The 5th topic in my series of “Ask the experts – why companies to go through transformation” , focuses on: New Business Strategy.
New business models can evolve fast, rendering more traditional models redundant in very short time frames. The ability to transform business models to meet a new business paradigm is vital for survival in many business areas. We have witnessed the breakneck speed that technology has changed some markets, rendering some previously successful business models completely redundant in a few short years.
Take the music industry as an example. Most music is now downloaded rather than buying CD’s. HMV was a very successful traditional high street model which failed to transform, and was completely taken over by innovators in the download and streaming markets: they failed to spot Spotify, were caught napping by Napster and didn’t sing to the same tune as iTunes. Even the highly successful iTunes model is potentially under threat as consumers turn to renting music from streaming services rather than buying songs. Apple has recently responded by paying $3billion for Beats Music – a transformation in their model.
Next topic in the series (coming soon): Go Digital