Business model transformation as an explanation of dramatic demand-supply change events

This paper discusses Business Model transformation in corporate turnaround events. This is accomplished with a Business Model Framework and by studying a set of cases, where demand-supply constellation has dramatically changed. The cases are from Finland (Nokia) and China (Baidu). A fourth case compares two business models with each other that existed simultaneously, but in different parts of the world. It is commonplace that a Business Model is thought of as a blue print of a desired future business opportunity and as such it is often embedded in the business plan in a rather blurred form. It remains in history as a snapshot of thinking of its time and bears little support for business creation or navigation in turbulent circumstances. Our ambition is to be able to suggest improvements to the state of the art by proposing better means to model dynamics of dramatic transformations that lead to turnaround of corporations.