From Recipe to Dinner: Business Model Portfolios in the European Biopharmaceutical Industry

Abstract

This article builds on the analogy between the business model concept and a recipe to discuss the concept of a business model portfolio (which we analogise as a dinner). In this context, we view analogies as concise, shorthand ways to describe important concepts and propose principles to organise new ways to make money in existing activities. Considering the different business models of four European biotechnology companies, we explore the their business model portfolios, defined as the range of different ways they deliver value to their customers to ensure both their medium term viability and future development. A firm's portfolio can help balance the levels of promise and interdependency with other firms of its different business models, and help it articulate and finance its activities in the medium run to ensure idiosyncrasy to protect its future health.