An exploratory research of business model: Case study on Taiwan technological industries

Taiwan is currently facing the challenge of industry upgrading, transformation of high-tech industry and services internationalization. Business model innovation is the key issue for Taiwan\´s industry. This paper reviews the literature over the past years and proposes an integrated conceptual framework which defines business model as value proposition, value creation, value delivery, and value acquisition. We use case study method to analyze a synthetic rubber company and identify two types of business models, namely the "Best Product" model and "Total Solution" model. “Best Product” model is to provide the best products with competitive features whereas value creation and value delivery are separated and customers will not perceive the value of the transaction until they have access to the product. Thus, the value of products in the market is the major factor for company\´s profits. The latter is to solve the specific problems of customers. While engaging in the problem solution, company makes profits by co-creation, delivery and recognize value with customers. Finally, this paper analyzes the relationship on these interactions to explore the different characteristics of the operation of the business model. Thus, enterprises can follow the procedures of continuous improvement and innovation of their business model which can create hard-to-imitate competitive advantages.