Olive oil as a luxury food: developing an entrepreneurial strategy through business model innovation

The global olive oil sector is currently transitioning from mass production toward high-value differentiation. This research explores the strategic shift in extra virgin olive oil (EVOO) positioning through the creation of a distinct market niche within the luxury sector, contributing a framework for Business Model Innovation that enhances consumer value. A qualitative case study focuses on a Greek Small and Medium-sized Enterprise (SME) implementing a luxury positioning strategy. Primary data were collected through in-depth semi-structured interviews with the firm’s leadership and direct observation. Data triangulation included secondary data and external validation through feedback from key stakeholders. Operational tools such as the Threats-Opportunities-Weaknesses-Strengths (TOWS) matrix and the strategy map architecture were used strictly as management support instruments to visualize and execute the transformation of the business model under consideration. The results show that shifting toward a luxury food model requires combining superior product quality anchored in certified organoleptic characteristics with strategic branding and artification. This study highlights that an SME adopting an asset-light model and focusing on orchestrating the stakeholders involved in the value chain can achieve prestige pricing. The emphasis on a distinct sensory profile creates a complete experience and emotionally engages consumers. The study offers a replicable strategic model for food and beverage entrepreneurs who wish to move from the classic commodity model toward an elevated market positioning.