Innovation and Evolution of Dual-Track Business Models: The Impact of D2C and B2C Integration on Competitive Advantage

This paper investigates the possibility of combining the traditional separate approaches of Direct-to-Consumer(D2C) and Business-to-Consumer (B2C) best practices into a dual-track strategy. As digitalisation has become prevalent in company operations and consumer habits, the D2Cand B2C operations have blurred, creating a possibility to jointly manage two models. The aim of this study is to investigate the rationale for this shift - both from a technological efficiency and customer experience/experience viewpoint, as well as the market reach perspective. A case study approach coupled with the analysis of other market experience are used to explain the rationale and operational benefits of the dual-track model, with specific focus to customer satisfaction, operational efficiency and market position. Data analysis reveals that merging the operations into offers significant advantages in regards to creating a superior brand equity and having operational synergies. However, such an operation is the most challenging to manage and requires careful coordination with internal transformation, business model analysis, robust digital support, and careful coordination with distribution partners. In conclusion, this paper indicates that those companies that can successfully combine D2Cand B2C operations achieve a significant and sustainable competitive advantage.