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.