Amazon has successfully transitioned from a traditional e-commerce business model to an adaptive business model wherein they integrated both offline and online retail operations to leverage the strengths of both channels. As a result, Amazon has expanded into the grocery market, improved its product offerings to enhance the overall customer experience, and integrated advanced technology, logistics, and brick-and-mortar presence.
Prasad Nair, Country Manager, Toll group said "This was a major shift for everyone since the traditional distribution models were being replaced with a much more agile and an efficient one, with greater visibility across the value chain”
The companies must look into the markets and countries undergoing swift economic growth and industrialization. However, it may have an unfavorable political environment and should be carefully considered before entering the market with the adaptive business models. These markets offer fresh opportunities for organizations to look into their business challenges. According to Investopedia, It has separated the growing needs into Infrastructure, economic transparency, and a robust private sector.
These markets, however, are not without their own set of challenges. It is vital that firms understand the challenges and opportunities, which is the first and foremost step in forming a successful strategy in the markets.
For instance, Netflix has succeeded in adapting its business model, which has transformed from DVD rentals to a streaming service, and the firm also makes use of its data analytics to take viewers' requirements and provide personalized content.
Upon getting a clear idea about the emerging markets, the next step is to analyze the existing business models. This process involves many steps, such as evaluating how your business creates, offers, and values—it also ensures whether this methodology can be copied or necessary changes made for success in the new market. It is significant that the limitations and gaps need to be identified in the present business model, which has to be performed subsequently. Business models may succeed or not in the new market. Still, it is all about how it can work well in the competitive business landscape, which would require a makeover to perform effectively in the emerging one.
The tech giant Microsoft has successfully adopted a change from selling software licenses to a cloud-first and subscription-based model. Their focus on cloud offerings, mainly with Azure and the subscription-based Microsoft 365, has been crucial in its adaptive approach.
Bringing a new change to the existing model can be challenging as the firms follow the same approach for a long time. Nevertheless, there are several ways to make the task smooth and effective. It begins with embracing change; though it is complex initially, it is an opportunity to thrive. Firms ready to change have higher chances of succeeding in this competitive business landscape and being proactive, keeping an eye on emerging trends and technologies, and slowly adapting them to the business. Besides, it is essential to understand the customers as they are the critical source of information about what they require in the long run.
For instance, Tesla has succeeded in innovating with an adaptive business model, paving the way to penetrate new markets, overturn traditional industries, and maintain their position as a significant leader.
Understanding the customers in all possible ways is vital to all adaptive business models. The models leverage methodologies, such as taking customer feedback, data analytics, and insightful market research, to clearly understand customers' tastes and preferences. According to the study conducted by SmartSurvey, approximately 90% of organizations prefer customer satisfaction as the critical factor in enhancing customer retention. With this, it is crystal clear that the customer should be the prime focus. Regardless of industries, customers are the key and need to be treated fairly as a part of survival.
Nordstrom has achieved a milestone in increasing customer retention rates with the help of a customer-centric strategy; the company has introduced the Nordstrom Analytical Platform (NAP) to enhance service and product discovery, and this model is also utilized to forecast users' shopping preferences.
Manish Sinha,Founder & CEO, Runn Media Labs said "Initially, the focus was on the subscription based business model that could only be driven forward by good quality content and various OTT platforms have gained huge amount of subscribers through this"
All in all, the trends keep changing, and success will only occur when the companies are willing to adapt. The companies will have to experiment with various business model until they accomplish their objectives. Undoubtedly, it will be a time-consuming process, but it is result-driven. In the past few, giant firms have successfully gone through this complex phase and succeeded with the adaptive business models. Now, it is high time that companies should take the initiative to deal with models that work for them and be prominent players in the market. As the universe continues to evolve, the organizations that can be creative with their approach will be the ones that grow.
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