Business Models

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Create a Product with Superior Margin

The most profitable industrial product of all time is the Xerox copier. During the 1960s and 1970s, margins on the product were obscene. The copiers were so profitable that Xerox quickly determined that [more…]

Increase Your Profit Margin

If you’re looking for the gold standard of margin innovation, look no further than the Minnesota Mining and Manufacturing Company (3M). Growing from a humble sandpaper manufacturer, 3M is now a Fortune [more…]

Gain Staying Power from Proprietary Margin

Proprietary margin is the ability of your business model to make more money from the same customer than a competitor can make. You can accomplish this by [more…]

Win Big by Creating Proprietary Revenue Streams

A proprietary revenue stream is a revenue source unique to your business model. By creating a proprietary revenue stream, you’ve figured out how to monetize something that your competitors haven’t. As [more…]

Watch Out for Potential Drags on Margin

As you design your business model, focus on your product’s positioning, marketing, and sales process without worrying excessively about competition. You don’t win the race by looking backward. By the same [more…]

How to Assess Your Competition

Any competition drags down margins. Fighting for customers always leads to price/margin cutting. The only way to maintain high margins is to preemptively move to new and better markets before the competition [more…]

Create the Right Product Mix: Gasoline, Cigarettes, and Soda

Having the right product mix can be an important component of your business model. Most businesses have several product or service offerings. Some of these offerings have low gross margin, some have high [more…]

Create a Meaningful Cost Advantage

When a company has a meaningful cost advantage, it has contrived a business model that’s more efficient than the competition. If you’ve ever had to compete with a company that can deliver the same thing [more…]

Economies of Scale

The most time-tested method of creating cost advantage is to create economies of scale. The great companies from the industrial revolution — railroads, steel, oil, banking, and automotive manufacturing [more…]

What Is a Hybrid Corporation?

Efforts to create new corporate entities, which blend the best of the nonprofit and for-profit worlds, arise largely from the corporate social responsibility movement, which has grown substantially during [more…]

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