A business model defines the way a firm creates, delivers, and captures value. Often, technological innovations lead to changes in consumer behavior and to the emergence of new competitors, requiring a company to radically transform its business model. In this chapter, we’ll discuss some of the tough situations faced by companies and highlight the basic principles of new business models that firms should embrace to survive and thrive in the digital era.
Convert Razor into Blade
For a long time the music industry enjoyed significant growth by selling music in physical formats: vinyl, tapes, and CDs. Remember the days when you used to buy a CD with twelve to fifteen songs, even though you really wanted to listen only to ...