Modeling the value creation through business models: Cases study of Estee Lauder and L'Oreal

摘要

Business models are widely referred as the ‘logic of the firm’ —how it operates and creates value for its stakeholders. The paper, based on the CR Framework of business models, identifies the components of business models and models the value creation relationship among them by demonstrating business models of two world famous cosmetics companies. The results of the empirical analysis exhibit fully the good applicability of CR Framework for characterizing the logic of the firm.