Question

Can business models be changed or adapted? Or are they ingrained in the company culture?

Answer 1

Business models can be changed or adapted. They are not set in stone, and can/should be changed as and when the need arises. They may be ingrained into a company culture, but remember that the only constant is change. Change in business environment is a constant. Any company that fails to change with the times is likely to fail.

Business models changes may be required in these conditions ;

• change in industry - technological or structural changes in the industry may necessiate a change in the business model
• technology - advancements in technology may require a change in the business model due to :
  • newer methods of production
  • newer methods of distribution
  • more efficient business processes
• faster methods of information dissemination
• competitive pressures from peers
• identification of new sources of revenue which were unavailable before