Get Smart!: How to Think and Act Like the Most Successful and Highest-Paid People in Every Field
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- Your Business Model
- Rapid Obsolescence
| Two Million Jobs Disappear Every year in America alone, on average, two million jobs disappear. The products and services that companies were offering fell out of favor with changing customer tastes, and the skills necessary to produce those products and services were no longer required. This is a major problem in the world of work today, and it is only going to accelerate in the months and years ahead. Fortunately, on average in America, 2.2 million or more jobs are created each year. Fully 80 percent of new job creation comes from new companies offering new products and services to different customers indifferent markets. Because of this rapid rate of change, many industries and most companies are operating today on the basis of business models that no longer work, or that don’t work as they used to in creating a steady stream of sales and profitability. Your Business Model A business model is defined as the complete system, from beginning to end, by which a company produces and sells a product or service and generates profits. There are at least fifty-five different business models that a company can use. Trying to achieve results with the wrong business model for your current market can lead to declining sales and profitability or even corporate collapse. In 2007, when Apple released the iPhone, the senior executives at BlackBerry dismissed it as a toy and assumed that it would only appeal to young people who wanted to communicate with their friends. Within five years, its market share among business owners of cellphones dropped from percent to 0.4 percent, and the company has largely gone out of business. Rapid Obsolescence With the release of the iPad, and the ability of readers to download eBooks quickly and inexpensively, the entire book market changed. Within a year, Borders, one of the largest book retailers in the world, had gone bankrupt and shutdown its six hundred stores. This is happening to companies in almost every industry. Because they failed to adapt their business model to the new market situation driven by the onslaught of information, technology, and competition, long-established companies quickly disappeared into the pages of business history. Your personal business model, the way you have organized your life and career, maybe partially or completely obsolete as well. And if it is not obsolete today, it will definitely beat sometime in the future. Businesses get into trouble when customer tastes and demands change. Individuals have problems in their careers when employer requirements, in terms of specialized talents, skills, and abilities, change as well. To survive and thrive today, you must be on the cutting edge, as an individual or an organization, of the changes taking place around you. Download 0.86 Mb. Share with your friends:
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