The Need for Multiple Business Models

Photo-on-5-8-13-at-1.08-PM-3.jpgPhoto on 5-8-13 at 1.08 PM #3As I have mentioned in prior posts, the business model is the heartbeat of an organization.  There are so many differing views of how industry describes what a business model is.  So today, I too, put a stake in the ground and declare a business model represents the key activities of the business.

In this article I focus on the need for businesses to consider multiple business models. When I look across the horizon of differing industries the one common attribute, regardless of industry or type of business, is the business model.  Furthermore,  having more than one business model adds leverage for a company when defining the service and/or product benefits to the consumer.

Healthy business models provide ways for the organization to readily adapt to environmental changes. For example, disruptive technologies have an overwhelming impact in the marketplace.  We have seen this over and over again with companies like Apple, Facebook, Greenbox and others.

New technologies wreak havoc and companies find themselves in the position of having to reinvent themselves to stay in the game.  The question is why are companies playing catch up rather than just making quick modifications to the business model to accommodate the change.

There are no hard and fast rules about the business model.  Having more than one business model would provide flexibility depending on the economy, changes in technology, and scouting out new industries.  Make your business model pliable and “bob and weave” when the winds of change come.  Make your business a little less static and you will be able to withstand the test of time.

Cheers!

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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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