Article
Understanding Logistics-Based Competition In Retail – A Business Model Approach
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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