Successful Innovation in Business Models: Innovation must always occur to enhance competitive advantage. One is innovation in business models, which could be factors that determine the success of the company. Selection of appropriate business model accompanied by a qualified strategy is key to the success of many companies.
Examples of companies that make changes to Apple’s business model is, when it first launched the iPod first. iPod MP3 is not just technology, but rather part of a great business model, ranging from hardware (the iPod and iPhone), software (iTunes) to service (Apple Store). Apple’s business model adopted was a huge success, and until now continues to make history in Apple’s profitability. Apple was able to see great opportunities in the digital music industry, a time not too booming.
To create an innovative business model, then the company should be able to find gaps where market demand can not be fulfilled. Only a handful who really can do this successfully. For instance, Tata Motors’ successful launch of Nano, a car whose price is equivalent to 2.500 U.S. dollars only, to millions of Indians who previously could not afford a car.
In addition, you can also take advantage of core competency held for other business opportunities. For example, Marvel Entertainment, which in the 90s then established Marvel Studios, which later produced the blockbuster superhero movies including Spiderman.
The global finance crisis that hit this time, become one of the factors that cause businesses to change their business model. Cost efficiency no longer be the main focus, but the innovations that are expected to encourage growth in the future. When a crisis happens, it happens changes, including the customer. Customers have different preferences, so there may be new opportunities which previously did not exist. Businesses are able to understand customer needs and wants well is what will emerge from the crisis as winners.
One is Chrysler, which is one company that tried to get out of bankruptcy. Chrysler is currently held by Fiat is doing a turnaround and major restructuring. A number of models no longer manufactured, and intends to develop small cars and efficient. This is based on the fact that society is now more cost-conscious than ever before.