7Introducing a New Business Model: The Business Model Pyramid
The Problem: Business Model Inertia
There is a strong tendency for companies to bring a new venture to market using their existing business model or some variant of it. This can lead to a business model that is not well-suited to the new venture, and the mismatch can actually destroy value. Even when the default business model can be made to work, it very frequently leaves money on the table.
This impulse to default to the current business model has some good underlying reasons, which is why it is so common. First, the current business model has likely been optimized over many years and has a track record of delivering results—reliably, predictably, ...
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