Successful Business Models. Are there such things?
People talk about business models as the way they conduct business. However, emergence of new technologies are constantly transforming the way we run our businesses. According to my research business are changing all the time. There is no such thing as successful business model because of it.
First, because a business model may be successful at one point in time but not in another. For example, Apple Inc. once manufactured its products in the US but now it only designs its product and everything ells is out sourced internationally.
Second, any single model may work for one company but not for another depending on product, market, geography, government policies and many, many other forces that affect a business. The law of variation and Austrian subjective theory of value dictates that our preferences constantly change and every individual have differently preferences. At one point people did not mind going for shopping and cooking their own food. Now with the advancement of new technology people prefer to do their shopping through voice command activated apps on their cell phone and order deliveries.
Lastly, company business models are not set in stone. It is constantly changing based on consumer’s subjective preferences. Costumer’s values cannot be group with a broad brushstroke. That is why amazon offers speed and efficiency with its amazon prime (two day shipping) and even has plans to deliver packages through drones within minutes. Not only that, amazon offer third party seller items in case you prefer a different design that may have slower shipping.
To conclude, if you ask me if to give you the foundations of successful internet business models I will not be able to. Because technology and internet is constantly transforming the way we do business. However, I will cover some of consumer’s subjective values in my future blogs that determines the foundations of any successful business.