Organisations encounter a wide range of difficulties and possibilities in today's constantly shifting business landscape and market world. Technological breakthroughs, changing customer behaviours, globalisation, sustainability concerns, data availability, and the requirement for agility are all redefining the way businesses function. To succeed in this dynamic condition, firms must first assess the present market condition and then implement strategies that allow them to stay competitive, inventive, and adaptive. And to help you with that Imarticus Learning offers you a senior management programme to develop strategic leadership skills for the future by understanding evolving business models, delving into macroeconomics, decoding digital transformation and AI in businesses and cultivating strategic leadership and effectiveness.
In this article, we will have a look at the navigation through the changing landscape of a business model, types of models, and pros and cons of business models and the solutions.
Generation of New Business Model
When talking about — what is the business model in the current landscape or which business is more profitable, one must learn about the advent of reinvention and adaptation in the current scenario. There has been a fundamental shift in how organisations/businesses operate and deliver value to their clients.
This involves the concept of business model transformation — which involves creation, delivery and capturing value.
With the advancement of the digital platforms, big data and AI, innovative business models are emerging across industries, challenging conventional approaches and establishing new success criteria.
Types of Models in New Business Landscape
The following models depicts the transformative power of innovation in the business model design:
- Subscription Services: Companies like Microsoft and Adobe have revolutionised by shifting from a pay-per-product to a subscription model, offering unlimited access to their services in lieu of a monthly fee.
- Freemium Models: Many software companies, including Dropbox and LinkedIn, offer a basic version of their services for free while charging for advanced features, seamlessly blending marketing with monetisation.
- Economy Sharing: Airbnb and Uber's models have changed established industry structures by allowing individuals to share assets and services, such as houses and car rides, on an individual basis.
- Platform Milieu: Tech giants like Apple and Amazon have developed platforms that sell products and connect consumers with third-party sellers and app developers, creating vast ecosystem economies.
Pros and Cons of Business Models
Adopting any new business model brings many various benefits, enhancing innovation and competitiveness in a dynamic market landscape. Following are some of the pros and cons associated with the changing landscape of business model:
Pros:
- Enable competitiveness for businesses so that they can stand out in the market
- Enhanced market adaptability to respond to changes
- Higher growth through smarter business models (subscription-based models) that leads to customer retention via IT services
- Long-lasting and harmonious customer relationships by offering greater support and value
Cons:
- Facing resistance to change within a new business model
- Business plans might get affected by market uncertainties
- Training is required for employees
Solutions for the Challenges/Cons in New Business Model
In the rapidly evolving business landscape, new business models might just involve its own set of challenges. To overcome them, following strategies can be implemented:
- Overcoming resistance to change — This could be done via strong leadership skills and clarity in the vision, engagement of employees in the changing process, hands-on training and support to help with new roles and tech-based advancements, transparent and clear-cut communication with the stakeholders.
- Exploring through the technological and market uncertainties — This could be achieved by investing in innovation, focusing on solutions that are customer-centric and maintaining agility in their business models.
Final Words
In the ever-changing environment of new business models, distinguished by quick changes and technological breakthroughs, the point of view is clear - embracing change and innovation is not a choice, but rather obligatory.
The possibility to reinvent the company environment is great, whether via the use of new technology, rethinking consumer involvement, or the adoption of sustainable practices. Imarticus Learning in collaboration with IIM Lucknow offers a senior leadership course that equips individuals to navigate the present business landscape through effective financial management, leading digital transformation in business, strategising operations management, and understanding strategic marketing and pricing.
