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 articleRelated macro
Business strategy
Define business strategy through rigorous choices on growth, positioning, portfolios, resources and execution.
Discover the macroEditorial overview
Articles
Strategy in a world of overlapping disruptions
How leaders can make sharper choices on where to compete, where to invest and what to stop when multiple structural shifts hit at once.
Read articleFocus
How much distribution is actually enough?
Additional coverage creates value only while the incremental demand and strategic access justify the economics and complexity required to serve it.
Where does the industry actually make money?
Revenue and market share can obscure substantial differences in returns across activities, customer groups and positions in the value chain.
Strategic challenges
Most markets contain more claims than actual differentiation
Competitors frequently converge on similar promises because communication evolves faster than the underlying business model or capabilities.
A franchise model has two customers
The consumer proposition must remain attractive while the economics and operating model also work for the franchisee.
POV
Winning every competitive battle can destroy the market
A company can gain share and still lose economically when rivalry forces pricing, investment or service levels beyond sustainable returns.
Trying to appeal to everyone usually weakens the proposition
Consumer strategy becomes stronger when the business is explicit about which needs it will serve exceptionally well and which it will not.
Strategic impact
Changing the revenue model changes the business
Moving from transactions to subscriptions or outcomes affects cash flow, risk, capabilities and customer relationships far beyond pricing.
Portfolio roles should determine investment
A growth product, retention product and harvesting product should not receive resources according to the same assumptions or success criteria.
What we observe
Segmentation often describes consumers without changing strategy
We frequently see detailed personas that create little guidance about which customers, occasions or economics should actually be prioritised.
Large accounts can hide weak economics
We frequently see strategic importance assigned according to revenue while complexity, concessions and servicing requirements quietly erode value.