Business model innovation, when was the last time you checked the pulse?

Photo on 5-8-13 at 1.08 PM #3

Rita McGrath recently said “I’ve been researching what allows companies to be successful even when their competitive advantages are short-lived – a phenomenon I call transient advantage”.  Transient advantage means to do something different when your competitors catch up to you.

In other words, when the market is over crowded with tons of folks providing the same services, it may be time to start looking at ways to exit that field.  However, it’s is important to note that to be successful at exiting and entering a new field is the need to constantly scan your environment.

Think about it from another perspective. In every major city there are people that hustle to earn a living everyday by selling their wares.  When others smell the scent of success, more people begin to sell the same product.  The street savvy person, that originally began selling, changes his strategy to sell something different to make his income.

He has a transient advantage when he is out in front of his competitors.  When he senses he is losing market share, because he keeps tabs on what his competitors are doing, then he adjusts and sells something different. Assess, reevaluate and reposition.  The business model is the center mass in developing a competitive advantage.

A company’s business model, its logic for how it goes to market, needs to incorporate a proactive approach to where you are in comparison to your competitors.  The question is, when was the last time you checked the pulse of your business model?  Is it on life support, and because of its complexity cannot be readily changed?

Being nimble and agile in this hyper competitive environment is a must in any industry.  The way to take advantage of your industry is to look for ways to quickly adjust your business model. Assess, reevaluate and reposition.

In my next post, I will discuss ways to assess your business model.

Cheers!

Renee Sanders is a PhD candidate in business at Capella University, where her specialization is strategy and innovation. Renee holds an BBA and MBA from the University of Maryland University College. Renee currently works in for a defense contractor as the Director of Strategic Pricing and Price to Win.

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