More can be better: operating multiple business models in a corporate portfolio

摘要

BMI is widely accepted as viable tool to maintain and enhance competitiveness. Strategic BM portfolio management is increasingly seen as the next logical step in preparing a corporation for market needs, both current and future. To enrich this field, this research presents and discusses enhancing and impeding factors related to BM diversification as a growth strategy. It shows the emerging importance of the topic and indicates that diversification is a beneficial move helping a corporation to stay ahead of the competition. At the same time, a diversification strategy needs to fit into the overall corporate strategy; hence, the form of diversification requires a firm-specific decision, for which corporate management needs to carefully consider the accompanying challenges and opportunities within and beyond firm boundaries. The awareness of these impeding and enhancing factors helps practitioners to make strategic decisions. Let Miele serve as the conclusive example for a company successfully changing and enlarging its core BM. By introducing the Dialog Oven, a radical new cooking technology, Miele opened up possibilities for additional BMs. "MChef", a venture capital company of Miele, offers high-end ready-made meals to consumers, hotels and private clinics for room service. Thus, Miele added a new BM, well aligned with its existing portfolio.