While most changes to business models are incremental, we should always be looking to see how we can make our existing model obsolete by replacing it with something new.
Incremental changes are, of course, much easier to copy and so any such changes will only give you an edge for a short time. A completely new business model, though, will keep you in front for much longer while your competitors seek to catch up.
Look at what Uber did to the taxi market, Airbnb to the hotel market, Tesla to the car market, Apple to the music, phone and camera markets. They created true disruption and, as a result, gained a market leadership position that has been worth tens of billions of dollars – the first two companies having a market cap over $100 million, Tesla with a market cap north of $675 billion (more than the top 10 traditional car companies combined) and Apple, of course, over $2.2 trillion!
So, don’t be content with tweaking your existing model to make small changes – look for ways in which to make it obsolete with your brand new one.
It will reap rich rewards.
#BusinessFitness #Strategy #Leadership #Disruption #QOTW
Some of my other short posts that might help you when thinking about business models:
- Leaders – Do You Think Like a Scientist?
- “Do not go where the path may lead, go instead where there is no path and leave a trail.” – Ralph Waldo Emerson
- Looking Back to Look Ahead
- “For every thousand hacking at the leaves… there’s one striking at the root.” – Henry David Thoreau
- “Wherever there is change, and wherever there is uncertainty, there is opportunity!” – Mark Cuban
- Where is YOUR Next Major Competitor Coming From?
P.S. I think Buckminster Fuller would have loved this picture and the tecnology age we’re in now. There’s a short piece on him here.