Reshaping your company business model: Building for the future during the downturn

There is widespread recognition that the typical corporate cost-cutting initiatives will not suffice in the current business environment. To navigate the global downturn and even prosper in the process, corporate leaders must take a step back and consider how best to implement long-lasting and effective initiatives aimed at fundamentally improving the way their companies operate. Strategy&'s approach focuses on three strategic questions: What do we do? How do we do it, and where? How well do we do it? Our experience shows that companies too often neglect the relevant issues related to their business model (“How do we do it?”). Focused efforts in this area can result in structural improvements in efficiency and effectiveness.

This study explores the commonly observed issues and derailers surrounding companies’ business models in light of important questions they currently face: Have we built into our operation the flexibility and resilience necessary to survive this crisis? Is our business model appropriate for navigating and succeeding in this global downturn?