7 Rules for Doing Business

Bangalore: Dr. Alexander Osterwalder, who is also known as Dr. Business Model claims that “the whole idea of industry classification is falling apart.” He has been a business model expert and has written a book “Business Model Generation.” Osterwalder told Business Insider that today “more and more different business models competing in the same industry so that the idea of ‘industry itself’ is becoming irrelevant.”

Initially companies had one permanent business models so they had few competitors but now they have many models and so there competitors are also many. So in order to survive this tough competition the companies need new rules to regain the position and customers. Here are 7 rules that might help the companies recover.

Rule 1: More Models are better than one

It does not really matter if the company is earning a lot currently because it won’t help to fight against future competitions, so every company needs to have multiple business models. In case one model doesn’t work well in the market then the other model can achieve success and thus there will be a good balance. Microsoft could be one good example as it makes billion of dollars mostly from software licensing. But now it is losing its base to other business models like subscription support and ad support etc. It is trying to get into many new areas which have not been so successful as yet.