Is Your Business Model Right For Tomorrow’s Market?
Your business model is the component of your strategy that determines How you execute to serve your market(s). While the Internet did not “change everything,” the frenetic pace of today’s world and the dynamics of new distribution, sales, service, support, and manufacturing methods have rendered many business models less than optimal. This paper discusses the concept of a business model and looks at how to determine if yours needs review.
The Power of Focus
When times get tough or growth slows, many companies look at a diversification strategy to boost revenue. While this may increase revenue it rarely increases profits in the short term or the long term. Most companies would be better served with a strategy of focus than one of diversification.
The Three Pillars of Competitive Advantage
Sustainable competitive advantage has always been difficult to achieve. The underlying reason is that what is a competitive advantage “today” becomes the “cost of entry” tomorrow. Companies in the bottom half are constantly playing catch-up to those in the upper half. However, leaders often believe that yesterday’s advantage is still a competitive weapon when it has been reduced to a “commodity” management practice. This notwithstanding, we submit that there is at least one area left where competitive advantage can be still be gained and cannot be out-sourced.