Luca Ottinetti shares a post on a business model design that competes to win.  Business model design is a fundamental driver of shareholder value creation. It is the foundation for company performance upon which all actions follow. Its primacy cannot be overstated, yet most companies haven’t fully internalized how to compete through business models. WHY IT MATTERS A clear indication of the importance of business model design (BMD) is the company’s ability to retain its market position. The lifespan of…

  Luca Ottinetti provides an article that reflects on past recessionary crises to help business leaders move through the current situation productively with examples of strategies from TMSC, Ford, AB InBev, Home Depot, and Verizon among others. Managing through a recessionary crisis requires more than laying low and waiting for the storm to blow over. It takes proactive management to prepare and then take advantage of the general economic weakness. Recessions come from different starting events, for example (1) stagflation…

  Luca Ottinetti’s company blog identifies the drivers of organizational costs and explains why they add significant complexity to the administration of the business. The costs associated with organizational alignment deal with two functions:  coordination and administration. Coordination costs include resources dedicated to facilitating information sharing, knowledge transfer, and communication.  These resources may comprise teams, committees, or formal lateral units depending on the complexity of the organization. Administrative costs include the top management functions for executive control and direction over…

Luca Ottinetti’s company blog shares case studies that reveal how Intel and SpaceX successfully launched new products, and what went wrong with Nokia and Swissair’s business model innovations.   Entering a new market with new products that target new customers requires a new business model. It is a powerful strategic initiative that changes the rules of competition. It also represents a challenge with odds of success at roughly 30%, but ultimately – when done right – it rewards winners with…

From Luca Ottinetti’s company, a blog post that explains why business managers should rely on the industry cost curve to guide their actions and find out how supply and demand is impacting profits.   Market forces affect the equilibrium between supply and demand all the time. For instance, a typical situation of rising production costs drives excess capacity in the market and a shift in the supply curve. Another scenario of a drop in market demand causes a reduction in…