Markets and Models

they can prove extremely profitable

Changing your business model and the market in which you operate may be more difficult, as they can affect the structure of your organization. However, they can prove extremely profitable: cell phone makers at the turn of the century successfully transformed their product from a staid business tool into a mass-market fashion item with a strong youth market.

Similarly, luxury car makers such as Rolls Royce, unable to compete on price with cheaper car producers, changed their business model to supply the trappings of a luxury lifestyle -- vacations, watches, designer clothes -- rather than simply a mode of transportation.

ACTION POINT: Are there market or business model changes you should consider to make your organization more profitable?