Business Success: Morphing Current Businesses
Many traditional businesses are adapting their business models based on customer behavior. Amazon.com, the online bookseller, has grown into an Internet giant while many brick-and-mortar bookstores have closed. The publishing world has seen a change as authors enter the market independently using print-on-demand services.
Many small businesses are now gaining access to world markets. And larger, more established retail businesses, especially those with a traditional catalog presence, are creating sophisticated shopping experiences for their customers on the Web.[i]
Why are Amazon.com, Lexus, and Disney partnering with lesser-known online companies to sell products? According to Wiredmagazine’s Ian Mount, the large companies are moving toward the manufacturing-as-a-service model to stay competitive. It has become necessary to compete with the small entrepreneurs who are producing and distributing products on demand. The production of products has become a commodity. Because of the low cost of entry, anyone with a good idea can compete in this market.
New businesses that leverage this model are popping up everywhere, and many have global reach. Jeffrey Wegesin, a furniture designer, advertises his designs on the Web. Upon receiving an order, he contracts with an on-demand manufacturing service in New Zealand to create and ship each piece. He has no inventory or other up-front costs. His business is pure profit.
Designers of clothing, jewelry, robots, you name it! The model is inherently charming because of its efficiency and simplicity. Individual musicians and authors can market their goods without any up-front investment. With little more than a product idea and a good design, anyone can become an instapreneur.[ii]
Come back for more business intelligence and change management focused blogs by The OLIVIAGroup! Feel free to comment with questions, insights, or additions to this post. To receive alerts when the next blog is published, click on the RSS feed to subscribe.
Visit www.OLIVIAGroup.com to learn more about Business Intelligence and hiring Olivia Parr Rud for your next conference!
[i] Bradley and Nolan, Capturing Value in the Network Era, 7-8
[ii] Ian Mount, “Upside of the Downturn: 5. The Rise of the Instapreneur: Manufacture and Sell Anything in Minutes,” Wired (April 2008), 129