Reconfiguring Business Models Under Exogenous Pressure: The Role of Regulations and Consumer Demand in New Market Entry

Sammanfattning

As firms increasingly operate in markets characterised by competition, uncertainty, regulations, and shifting consumer demands, understanding how business models (BMs) are reconfigured has become increasingly important. Against this background, the study aims to increase the understanding of how regulations and consumers, as exogenous forces, influence the reconfiguration of business model components when firms approach a new market category. By examining the relationship between exogenous forces, business model reconfiguration and innovation, the study contributes to existing literature within business models and business model innovation (BMI). In order to answer the research question, the study adopted an exploratory case study approach within the flavoured alcoholic beverage market, with a particular focus on carton packaging. A qualitative approach has been used, consisting of semi-structured interviews with producers, retailers, and packaging actors, as well as focus groups with consumers from Generation Z and Generation X/Y. Additionally, secondary data is used to add context and understanding, focusing on regulatory conditions and generational attitudes and behaviours. The findings of the study suggest that both regulations and consumers influence business model reconfiguration, but through different mechanisms. Consumers primarily affect the customer value proposition through demands for taste, composition, social context, aesthetics and price. Regulations on the other hand affect what firms can communicate, the product formula, and which capabilities and processes need to be developed. Furthermore, the study illustrates that these forces primarily enter the business model through different pathways within flavoured alcoholic beverages, subsequently affecting other components. The findings additionally indicate that internal conditions, such as managerial judgment, economies of scale, competitive dynamics, and level of investment influence whether the forces develop to BM reconfiguration and BMI.