What is indispensable in your business model?

You have to answer this question if you want to know whether or not you can combine your business model with other business models. If you have indispensable elements in your business model, then copying it will be very difficult. When you offer something different, other companies will want to work/ collaborate with you. However, if you don’t have unique solutions in your business model other companies can copy your products/services very easily.

Of course, one reason other companies might want to collaborate and work with you is if they like your products or services, which you offer at a low price. However, that arrangement will last only as long you have the lowest prices. Should they find a competitor that offers an even more attractive deal, they will desert you without hesitation.

If you want to combine business models successfully, you have to create a unique business model.You have to answer the question: How do I play the game? If you don’t create a unique business model, one that is different from those other companies either already have or can create, what game can you play? It could well be a losing game of low prices, low margins, and 0 profits. You could be constantly fearful for the continued existence of your business.

A necessary condition for successful business model combining is that companies have to combine business models with complementary and indispensable business model ingredients. Businesses collaborate because they have a vital need for each other in order to ensure the creation of substantial value.