4. Conclusion

The optimization of traditional business models suggests ways to improve a firm’s reputation by making the right choices based on the Casadesus’ and Ricart’s framework. This reputation is essential to keeping the loyalty of existing clients as well as attracting new clients. Most architects follow this business model. Some make better choices than others, leaving room for improvement through this optimization. However, many small architecture firms are not in the phase of their business where they are enjoying the benefits of specialization and reputation. The “cut-throat” competition does not allow them to fully integrate into this business model, severely reducing their profitability. This type of firms needs to enter the industry through a different approach that eliminates some of the forces that work against them. It is possible by using alternative business models such as Architect-Developer that was proved to be superior choice in this study. The interviews showed that owners of companies that are in the start-up phase are very interested in this approach and believe it to be valuable for their future development and profitability.

Furthermore, it is possible to make a superior hybrid of business models that targets many forces in the industry as well as incorporating the trends. If an Architect-Developer firm was to create relationships with its consultants and contractors (or even better form one firm with them) such that it operates like One Stop Shop, and was to gain expertise in a particular market based on trends, it would significantly boost its profitability.

Architect-Developer

+

One Stop Shop

+

Expertise in a Trendy Building Type

=

Improved Profitability

Overall, the findings of this research suggest that there are ways to raise profitability of small architecture firms. Further research in form of case studies is recommended to quantify and show the extent of the effectiveness of the business model optimization.

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