Business model innovation : reinventing the milkman

Abstract

Business model innovation is a catalyst for creating competitive advantage. During the mid-1900s the lack of good refrigeration led to daily deliveries by the milkman, but improvement in packaging, affordability of refrigeration, and theft made the milkman obsolete. Although the milkman is no longer with us, its business model, through innovation could be reinvented as an online convenience grocer who delivers at the doorstep. A qualitative research design was employed to investigate the possibilities of this innovation. Results shown that there is a market for an online convenience grocer. Businesses are increasingly using technology to offer their products and services. Customers are willing to pay for deliveries because they see the value in the service. Deliveries create a competitive advantage. The biggest hurdle for the implementation of this business model is crime; other concerns are the inspection of the quality of goods before purchasing, packaging, and times of delivery because of availability of customers.