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"Markets change, and business models have to change in parallel. Success depends on constant business model innovation. In order to succeed, you need to get two things right: You have to target a defensible market segment, and you have to create a business model that enables you to win against competitors who are going after your target segment. In developing a high-profit business model to engage your target customers, you have two basic choices: (1) increase your customer value, or (2) lower your cost to serve (or do both).
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In order for your company to succeed in the post-pandemic era, you must do two things well: Select your strategy carefully to target a defensible market segment and tailor your business model to capture and dominate your target market.
The problem is, most companies aren’t ready to compete on these new terms. The pandemic sharply accelerated market fragmentation. This allowed the digital giants, fueled by their market micro-segmentation, to grow quickly, but most companies have not changed their business model to meet these new conditions. Many managers who rose through the ranks in the previous era simply assumed that their age-old, tried-and-true, broad-market business models were still effective. Financial analysts continued to evaluate companies based on sales growth and expense minimization, reinforcing the problem.
In developing a high-profit business model to engage your target customers, you have two basic choices: (1) increase your customer value, or (2) lower your cost to serve (or do both). This is complicated by the need to transition from the previous broad market targeting to the new segment-specific targeting."
Trechos retirados de "How to Create a Winning Post-Pandemic Business Model"
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