Designing the next business model before the current one plateaus
How companies can identify new value pools and build business models that combine differentiated customer value with scalable economics.
Read articleWhat Makes the Next Location Worth Opening?
A new location is attractive only if its incremental system value exceeds capital, ramp losses and added complexity. Copying the average economics of mature sites assumes demand, labour, competition and operating conditions are transferable. The next site is usually selected from the remaining opportunities, not from the conditions that made the first sites successful.
Build demand from the local catchment upwards. Estimate customers, occasions, conversion and spend after cannibalisation from existing sites and digital channels. Test visibility, access and competitive response. Then model local rent, wages, utilities, regulation, logistics, management span and the time required to reach stable service. Use cash contribution after maintenance capital, not site EBITDA alone.
Place effects are economically material. OECD regional data show that productivity in the most productive regions was twice that of the least productive within member and accession countries in 2022; capital-city regions ranked first in 20 of 33 countries. A national average can therefore conceal major differences in talent, suppliers, infrastructure and customer purchasing power.
Evaluate network effects in both directions. A site may improve delivery density, brand visibility, purchasing scale or resilience beyond its own profit; it can also fragment inventory and leadership attention. Attribute these effects explicitly and compare them with lower-capital alternatives such as a partner, temporary format, mobile service or targeted digital coverage.
Approve the location with a site thesis: demand source, cannibalisation, steady-state contribution, cash trough, strategic benefit and exit value. Define leading indicators and staged commitments before signing irreversible leases or building capacity. Expansion creates value when each site strengthens the network after its full local economics are counted�not when the map simply gains another point.
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Read articleFocus
Corporate positioning becomes strategic when it is designed around stakeholders whose choices materially affect the company's ability to execute.
A positioning strategy becomes meaningful only when the answer changes customer preference under realistic competitive conditions.
Strategic challenges
Customer enthusiasm can coexist with weak pricing, expensive acquisition or an operating model that becomes uneconomic at scale.
Technology, convergence and new business models increasingly allow competitors from adjacent sectors to enter established value pools.
POV
A company can gain share and still lose economically when rivalry forces pricing, investment or service levels beyond sustainable returns.
A stronger narrative cannot compensate for decisions that consistently undermine the corporate position the organisation claims to hold.
Strategic impact
Store size, assortment, service model and location type can change capital intensity, customer missions and network economics.
Stakeholders infer corporate priorities from investment, incentives and behaviour long before they accept the language used to describe them.
What we observe
We frequently see new offers forced through legacy revenue, channel and operating models that undermine their intended advantage.
We frequently see visible expenses cut rapidly while structural complexity and economically weak products or customers remain untouched.