The Impact of the Business Model on the Return Rate. The Case of Wine Cellars in Southern Bulgaria

Rositsa Nenova

Abstract: Profitability is an economic category of fundamental importance to any business organization. The business model, in turn, is the construction on which the enterprise operates. There are several types of business models of wine cellars in the country - wine cellars with priority wine production, wine cellars with priority wine tourism and wine cellars combining wine production with tourist activity. The types of profitability investigated as an effective indicator of the management of wine companies are: return on assets, profitability of sales and return on equity. The purpose of this article is to evaluate the profitability according to the different business models of wineries in Bulgaria.
The analysis performed shows that the return on sales is mainly determined by the chosen business model in the sector. The most successful and positive impact on the return on sales is the business model, which manages to combine the production and marketing of wine with tourism (wine tourism). With respect to the return on assets and equity, the choice of business model does not play a critical role.

Keywords: business model; return rate; tourism; wine

Date published: 2020-08-27