https://doi.org/10.1177/2043886920910432 Journal of Information Technology Teaching Cases 1–10 © Association for Information Technology Trust 2020 Article reuse guidelines: sagepub.com/journals-permissions DOI: 10.1177/2043886920910432 Journals.sagepub.com/jittc JITTC Company background Digikala, founded in 2007 by two brothers named Hamid and Saeed Mohammadi, started with seven employees and gradually increased its employees over the years. Focusing on providing technical content on digital products like cell phones and cameras in Persian, Digikala quickly attracted audiences. The main focus of the Digikala website was a comprehensive review of digital products (mobile, camera, and laptop) in 2007 and it was also possible to contact— through phone or SMS—consultants on products and their prices (Mostakin, 2017). Along with Digikala’s main purpose of content genera- tion, a new service related to producing different videos on education and review of digital products was added to Digikala in 2012, which indeed also saw the birth of Digikala TV. Digikala expanded the sale of the product group of mobile, camera, and laptop to all digital products and its employees increased to 200. Adopting the Sarava Pars Investment Fund proposal was another main event in Digikala in 2013, which made it possible for Digikala to reach its goal in a shortened time frame (Khalili, 2017). Digikala accounted for more than 85% of Iranian elec- tronic retail in 2014 and its staff increased to 700. Talk about Digikala in popular media, such as The Economist and the Washington Post, saw the site stand out as what was called the Iranian Amazon. Digikala was also ranked as the largest online startup in Iran with a value of US$150 million (The Economist, 2014) according to The Economist statistics, Digikala was also recognized among the top 10 entrepreneurs in the world at the 2014 World Value creation analysis using atomic business models: The case of Digikala e-retailer – Part B Payam Hanafizadeh 1 , Saeedeh Mehri 1 and Hamid Hasanabadi 2 Abstract One of the reasons most startups fail, despite their growing number, is the inability and lack of flexibility of their business models in responding to market changes. In addition, due to the uncertainty of the startups’ environment, it is difficult to gain competitive advantage; startups need to continuously change their business models. One of the most common electronic business models is the electronic retailer. Despite the many challenges facing e-retailers due to market changes and customer preferences, Digikala has been ranked as the most popular and most visited website and has managed to gain over 85% of the Iranian retail market share. The purpose of this study is to analyze the value creation in Digikala in order to answer the following questions: Through which atomic business model can business value be realized? What change strategies should be applied to be able to provide a unique and stable value and be successful? Keywords Value creation, electronic retailer, business model, change strategies, atomic business models, Digikala 1 Allameh Tabataba’i University, Iran 2 University of Tehran, Iran Corresponding author: Payam Hanafizadeh, Department of Industrial Management, Faculty of Management and Accounting, Allameh Tabataba’i University, Dehkadeh- ye-Olympic, West End Hemmat Highway, Tehran 1489684511, Iran. Email: hanafizadeh@gmail.com 910432TTC Journal of Information Technology Teaching CasesHanafizadeh et al. Teaching Case