Business Model Innovation via "Margin Conflict"
In the competitive landscape of business, a powerful disruptive strategy exists that doesn't rely on technological breakthroughs or superior products, but rather on reinventing the fundamental economics of an industry.
This approach, known as business model innovation, targets what I like to call "margin conflict" – a structural vulnerability that makes it nearly impossible for incumbents to respond effectively to certain types of competitive threats.
Business model innovation works by introducing alternative ways to create, deliver, and capture value, forcing established players into an impossible dilemma: maintain their existing high-margin business model or cannibalize their own revenue streams to compete with the disruptor.
This strategy has repeatedly proven effective across industries, enabling newcomers to challenge and often overtake dominant incumbents despite having fewer resources and less market power.
We’ll start from here.
