Vysochyn Iryna, Doctor of Economics, Professor, Professor of the Department of Economics and Business Finance, State University of Trade and Economics, Kyiv, Ukraine

ORCID ID: 0000-0002-1738-8553
e-mail: i.vysochyn@knute.edu.ua

Integration of Business Model and Strategy as a Prerequisite for Ensuring Sustainable Competitiveness in Retail Trade

Abstract. Introduction. The growing role of integrated strategic management in ensuring sustainable competitiveness in retail is driven by globalization, digital transformation, the rising importance of sustainability, and rapid changes in consumer preferences. Modern retail is marked by market saturation, multichannel competition, and high innovation demands. In such an environment, not only developing an effective strategy but also building a business model capable of flexible adaptation while supporting economic, social, and environmental sustainability is crucial. Alignment and mutual reinforcement of business models and strategies are key to forming long-term competitive advantages, while poor integration reduces efficiency, weakens market positions, and limits sustainable growth.

Purpose. This article aims to systematically explore the relationship between a company’s business model and strategy as determinants of sustainable competitiveness in retail, and to identify principles and mechanisms for their integration to ensure resilience and value creation for stakeholders.

Results. The study reviews theoretical approaches to defining business model–strategy interrelations, clarifies their roles in shaping competitive advantages, and outlines three integration models: strategy-driven, business model–driven, and integrated. It identifies key strategic axes for retail, such as competitive positioning, trade format, distribution channels, pricing, and growth strategies. Competitive advantages – cost-based or non-cost – emerge from the synergy of resources, capabilities, and market opportunities. Case studies of Ukrainian retailers (ATB, Rozetka, Silpo) demonstrate how successful integration drives market leadership and customer loyalty. Five principles for alignment are proposed: strategic goal coherence, flexibility, synergy, resource consistency, and customer centricity. Evaluation tools include the Balanced Scorecard, KPI analysis, benchmarking, value chain analysis, and customer experience mapping.

Conclusions. The findings confirm that the interplay between business model and strategy is decisive for sustainable competitiveness in retail. Strategy defines the development vector and market positioning, while the business model translates it into operational processes, resource allocation, and value delivery. The proposed principles and tools offer practical guidance for enhancing adaptability and long-term market viability. Future research should examine the influence of digital technologies on integration – especially in omnichannel retail, big data personalization, and AI-enabled logistics – as well as the resilience of business models under economic turbulence and shifting consumer behavior.

Keywords: business model; strategy; competitiveness; competitive advantages; sustainable development; retail trade / retail; integration.

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