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
Articles
How companies can identify new value pools and build business models that combine differentiated customer value with scalable economics.
Read articleHow 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
Revenue and market share can obscure substantial differences in returns across activities, customer groups and positions in the value chain.
A strategically attractive move can become economically destructive when the likely reactions of rivals are excluded from the decision.
Strategic challenges
Options that are attractive early in a decline can disappear as cash, customer confidence and organisational capacity deteriorate.
Hiring, infrastructure and market expansion can institutionalise assumptions that were never properly tested at smaller scale.
POV
Consumer strategy becomes stronger when the business is explicit about which needs it will serve exceptionally well and which it will not.
Corporate strategy should ask whether the parent is the best owner, not simply whether the underlying business is attractive.
Strategic impact
A proposition can create substantial customer benefit while weak differentiation or bargaining power prevents the supplier from capturing much of it.
A shift in regulation, technology or bargaining power can move economic value between participants without changing total industry demand.
What we observe
We frequently see R&D continue through organisational momentum even after the assumptions that originally justified it have weakened.
We frequently see portfolios of initiatives presented as strategy without explicit choices about markets, advantage, economics or trade-offs.