Business Model Innovation Toward Sustainability: A Case Study in Outdoor Fitness Equipment

A novel competitive landscape requires managers to innovate business models. Drawing on a theoretical framework that classifies Business Model Innovations (BMI), the paper contributes to the literature studying business model innovation toward sustainability in outdoor fitness equipment (OFE). The OFE is an empirical setting worth investigating because emerging trends disrupt the fitness industry. The Pandemic has shifted how these firms deliver their services. The concept of wellness has evolved from “being in shape” to “achieving a well-being state,” which includes mental, spiritual, and physical health. Differently from the pre-pandemic period, consumers’ focus is on feeling better rather than looking better physically. Relying on a case study approach and using multiple semi-structured interviews, the paper offers empirical evidence of BMI in the OFE. The company innovated its business model (BM), embracing novelty and differentiation and moving from rethinking customer segmentation. Further, the case shows how BMI widens value creation toward a sustainable path, generating social and environmental value. The value chain and the company's ability to partner with its suppliers are pivotal. While the challenges generated by changes in customers’ habits trigger the BMI, the suppliers’ know-how and alignment with the company’s value proposition drove the innovation toward a SBM. The paper contributes to the literature on BMI and SBM. The evidence allows future research to explore how partnerships among companies operating along the same value chain emerge for the sake of the BMI toward sustainability. Practical and managerial implications are offered.