In recent years, a number of leading companies worldwide have been shaken by newcomers to the scene. Ignoring the writing on the wall, these market leaders failed to rethink their once successful business model and now they are too late. As of 2015, just 12% of 1955’s Fortune 500 companies in the US, which include IBM and 3M, remained on the list. Another example of this failure to adapt is highlighted by Research in Motion (Blackberry), when just seven years after making the top 10 of Fortune’s 100 Fastest Growing Companies it has dropped from the list.
As Richard Foster of the Yale Entrepreneurial Institute notes, “The average lifespan of a company listed in the [Standard & Poor’s 500 Index] has decreased from 67 years in the 1920s to 15 years today.” The global economy has undergone a series of drastic changes, and these shifts aren’t over yet. Therefore, companies need a successful revenue model that evolves with the changing climate.
You are probably familiar with some of the most drastic economic changes of the last decade. Some of these include:
While these are just a few examples, in order to make this article as concise as possible, we’ve intentionally held back from listing many other trends.
Stay on top of the trends that are relevant to your business to ensure a continuously profitable model.
Re-evaluate your business model. Maybe you’ll see the need to create a new plan or to adjust your existing model. After all, you don‘t want to find yourself in the same situation as the taxi drivers when Uber rolled into town!
For help developing a successful business model suited to a new business reality in your industry, contact us today!
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