Innovation is a strong subject in business model architecture as a critical

Innovation is a strong subject in business model

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Innovation is a strong subject in business model architecture as a critical cornerstone for enhancing competitiveness. Indeed, changes and innovations of the business models can improve competitive advantage and boost the strategic marketing of products and services. Nowadays, industries and markets are progressively developing, adjusting toward a world increasingly influenced by disruptive technology, primarily thanks to a flexible and unpredictable business environment. Trends in the mobility sector are changing the nature of transportation, providing opportunities as well as challenges for the automobile industry. The society had already witnessed a great gamble with the introduction of the Smart car brand long ago. The unique idea of a small yet practice car for two-people, conceptualised by the watchmaker company Swatch and later on executed by Daimler AG, embodied a business model radically disruptive.
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Nowadays, the brand offers a wide range of models. Still, it’s interesting to stress how the company turned toward electric powertrains and successfully attempted to enter the car-sharing market with the Car2go service. Carsharing’s concept isn’t as young as commonly believed: it dates back to 1948 by a cooperative known as Sefage based in Zurich, Switzerland, intending to offer a car ride even to those people that couldn’t afford to buy one (S.A. Shaheen, A. P. Cohen, 2008). However, the first programmes of car-sharing have withstood for a short period: weak management, poor marketing, lack of notoriety, as well as recognition from politics, were the roots of its failure. Today’s demographic and social changes led by globalisation have provided a fertile share for the carsharing business; our society desires more and more connectivity, while the mobility options available to the consumer have expanded in a broad set. Daimler AG company was among the first to wave this change with Car2go back to 2007: “Renting a car anywhere, anytime and at low prices” (car2go Group GmbH, 2017). This utterly online business revolutionised the whole citizens’ mobility. Car ownership isn't any more necessary; people can now rent a Smart, practical and easy for finding a parking spot, quickly on the street with a smartphone, without the need of a rental office as well as keys for starting the car. Moreover, the service is aimed to solve several issues in common in the biggest cities around the world: congestion, air pollution and shortage of parking spots. Car sharing and its business model certainly have brought changes in urban driving and driver behaviour, exhibiting new revenue pools and displaying increasing relevance mostly to younger drivers. However, it cannot be considered a real game-changer according to Moody's analytics: ride-share technology, facilitated by universal smartphone penetration, has decimated the taxi industry; meanwhile, coincidentally, carmakers have enjoyed record sales (T. Hughes, 2017).
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