Global Business Team Projects, GlobalMBA Cohort 2018/19

An explorative analysis of new mobility services’ business models in the U.S.

Christian Engel, Chia-Ying Lin, Claudia Ramos, Joseph Starr, Tatiana Wottawa Mariner

Technological developments and changing consumer expectations towards mobility have led to the fast growth of new mobility services (NMS). In brief, NMS give users on-demand and short-term access to various mobility means by the use of a digital platform. The growing presence of micromobility, ride-sharing, and especially ride-hailing, and car-sharing companies is putting traditional mobility companies under pressure and is thus reshaping today’s mobility industry. Since the financial and operational sustainability of NMS business models has come under scrutiny after initial public offerings, this thesis analyses the current NMS industry with a focus on the U.S. market, and on the intersection of NMS and success. Important NMS industry characteristics include but are not limited to: (a) low average transaction values, (b) network effects, (c) customer trust, (d) high price sensitivity, (e) low brand loyalty, (f) high dependency on data analytics, and (g) legal battles. This thesis integrated the research methods of literature review, case studies, and expert interviews (n=7) with the triangulation method to identify critical success factors (CSF) for NMS business models. Accounting for the challenges mentioned above, the following nine CSF were identified: (i) Efficiently match supply and demand, (ii) Ensure long-term and steady revenues, (iii) First focus on growth, second on profit, (iv) Gain customer trust, (v) Integrate multimodality, (vi) Overcome regulatory barriers, (vii) Pursue innovation, (viii) Stimulate demand, and (ix) Utilize local knowledge. These identified CSF represent opportunities for NMS firms to gain long-term competitive advantage in a dynamic mobility industry.

Potential Benefits of Artificial Intelligence for US Non-for-Profit Healthcare Institutions. An Explorative Study

Adelaina DiRito, Valentin Eise, Juan Figueroa, Alexander Korten, Jiawen Zeng

With expenditures of almost US$ 7 trillion annually, the global healthcare industry is an economic behemoth. In addition, technological innovations, especially in the field of artificial intelligence, bring tremendous potential with them, transforming business models fundamentally. Against this background, this thesis strives to answer the following question: “What potential benefits do medical AI applications yield for non-for-profit US healthcare providers?”. In this context, the economic, political, societal, and technological environment of non-for-profit healthcare institutions in the US is defined, applications of AI in three selected players, namely the Mayo Clinic, MD Anderson, and Brooks Rehabilitation Center, in the US non-for-profit healthcare market are explored, and potentials of AI for such institutions are evaluated, before strategic implications are derived. Methodologically, this work relied on extensive literature study and was backed up by semi-structured interviews with leading members of respective case institutions. Additionally, the Iron Triangle of health, consisting of cost, quality, and access, was a suitable framework to approach the complexity of the industry in general and of chosen institutions in particular. Main findings suggest an enormous dynamic of the overall industry regarding development of expenditures as well as consolidations. The regulatory setting appears to be intricate, with multiple players setting the standards for the future of healthcare. Overall, this thesis contributes fundamentally to the understanding of healthcare as a business, considers artificial intelligence as one of the key technologies to be reckoned with, and explores implications for US non-for-profit healthcare institutions in an ever-changing environment.

The impact of digitalization on the core business models in the food retail industry. An analysis of opportunities and challenges

Yunxu Bian, Wiktor Bossemeyer Biernacki, Iwona Wiktoria Niedziółka, Teresa von Lauvenberg, Qin Zhang

This thesis will analyze how the business models for food retail stores in Europe are adapting to the increasing presence of digitalization within our everyday lives. A focus is placed on how three established food retailers within three different European countries are evolving their business strategies to serve the needs of a society that is increasingly influenced by technology. The thesis will analyze and take an in-depth look at France, Germany, and the United Kingdom as within these European markets, advances are already beginning to take place. The research intends to analyze how the business models for food retail stores have been evolving to adapt to changes brought through digitalization and will attempt to define opportunities and challenges for the food retail industry, which are arising due to those transformations. Companies are beginning to implement new approaches for digital businesses and updating their business strategies as a response to increasing pressure from outside competition. During the course of the research, semi-structured interviews with experts in the European food retail industry were conducted. The three investigated traditional food retail companies include: Carrefour Group, REWE Group, and Tesco PLC. Furthermore, secondary data will be collected, and financial reports will be analyzed. As an outcome of the research and the conducted interviews, this thesis will attempt to answer the research question and provide an answer for whether a response to trends of digitalization and the implementation of multi-channel offerings affect the competitive advantage for grocery retailers or not.