This PPT slide, part of the 30-slide Business Model Innovation PowerPoint presentation, outlines 5 key circumstances that often necessitate a shift in business models, emphasizing the importance of innovation in response to market dynamics. Each circumstance is categorized into opportunities and needs, providing a structured approach to understanding when and why businesses might consider model innovation.
The first circumstance highlights the chance to address disruptive innovations aimed at large customer groups who find existing solutions too costly or complex. This suggests a market gap that can be exploited by simplifying offerings or creating more accessible alternatives. The example of Tata Motors' Nano car illustrates this point, showcasing how addressing affordability can unlock new customer segments.
The second circumstance focuses on leveraging new technologies, either by creating a new business model around them or introducing tested technologies to new markets. The reference to Apple and its MP3 players indicates how innovative applications of technology can redefine market expectations and consumer behavior.
The third circumstance discusses the potential to establish a job-to-be-done focus in industries where such a focus is lacking. This can lead to a more customer-centric approach, as seen with FedEx, which prioritized customer needs over traditional competitive strategies.
The fourth circumstance addresses the necessity of defending against low-end disruptors. The example of mini-mills in the steel industry illustrates how new entrants can threaten established players by offering lower-cost alternatives.
Lastly, the fifth circumstance emphasizes the need to adapt to a shifting basis of competition. Companies must recognize that market definitions and acceptable solutions evolve, as demonstrated by Hilti's response to changing manufacturing costs, which allowed low-end entrants to encroach on their market.
Overall, this slide serves as a strategic guide for executives considering when to innovate their business models in response to various market pressures.
This slide is part of the Business Model Innovation PowerPoint presentation.
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Innovation Management Business Model Innovation Business Model Design Consumer Behavior Manufacturing Innovation
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