We analyze the optimal strategy of a high-quality incumbent that faces a low-quality ad-sponsored competitor. In … endogenous vertical differentiation concerns. We discuss how our study helps improve our understanding of notions of strategy …, business model, and tactics in the field of strategy. …

The notion of business model has been used by strategy scholars to refer to "the logic of the firm, the way it operates … and how it creates value for its stakeholders." On the surface, this notion appears to be similar to that of strategy. We … present a conceptual framework to separate business model from strategy. Business model, we argue, is a reflection of the firm …

We analyze the optimal strategy of a high-quality incumbent that faces a low-quality ad-sponsored competitor. In … our study helps improve our understanding of notions of strategy, business model, and tactics in the field of strategy. …