Business Model Innovation and Competitive Imitation : The Case of Sponsor-Based Business Models

  title={Business Model Innovation and Competitive Imitation : The Case of Sponsor-Based Business Models},
  author={R M Zhu},
We study sponsor-based business model innovations where a firm monetizes its product through sponsors rather than setting prices to its customer base. We analyze strategic interactions between an innovative entrant and an incumbent where the incumbent may imitate the entrant’s business model innovation once it is revealed. The results suggest that an entrant needs to strategically choose whether to reveal its innovation by competing through the new business model, or conceal it by adopting a… CONTINUE READING
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