Purpose – Logistics scholars, as well as strategic management scholars, have in recent years shown that capabilities in logistics and supply chain management may be the foundation for a company's sustainable competitive advantage. It can be argued that beside product-, production-, or market-oriented companies, there are also flow-oriented companies, in which the business models are based on superior logistics performance. The purpose of this study is to explore the characteristics of logistics-based competition, i.e. how a logistics-based business model is designed. Design/methodology/approach – The research is based on a case study at a German do-it-yourself retailer. The case company can be considered as a best practice company when it comes to logistics-based competition, where a committed top management team guarantees the importance of logistics in the strategic development of the company. Findings – Logistics-related characteristics of the three business model components – external environment, internal factors and offering – are elaborated. Originality/value – This research adds to existing theory by developing the meaning of logistics-based competition. The strategic role of logistics is described through a business model approach.
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