The Transformation of Business Models in Technology-Enabled M&A: A Case Study of Amazon

Abstract

Little is known about how a configuration of dynamic capabilities (DC) contributes to the transformation of the business models (BM) of ICT acquirers. The chapter addresses this limitation by taking a strategy-as-practice theory perspective. The inductive (illustrative) case study Amazon.com acquisition of Whole Foods (2017) demonstrate how acquires sense new customer group and new key activity; seize new resources and key partnerships and transform organization by mean of new promotional channels and new customer relationship, therefore change cost structure, create new revenue streams, and develop new customer value proposition. The chapter develops a practice-driven model as a practical guide for scholars who have been studying DCs and BMs, as well as for those who are new to the field.