Scalable Business Model Research Articles

A model failure: Why news can no longer pay its way

Abstract Throughout its history as a professionalized practice, the adoption of new technologies has affected news journalism as a consequence of changes in its delivery; its consumption; or its management. This article focuses on how new technologies, in particular the web, have affected the business of news. It considers whether the digitalization of news has undermined the business model to make the production of news journalism unaffordable for the handful of large companies that now dominate the UK and US newspaper industries. The article argues that the practice of journalism has become marginalized within the news industry because its business model is based on selling the attention news attracts, rather than on seeing the journalism producing the news as an asset. Finally, the article posits that there is no longer a successful, scalable business model for news journalism in the United Kingdom and United States and a new model will not emerge from adding digital delivery to existing models but from a re-imagining of journalism outside of the news industry.

An explorative model of business model scalability

There is broad consensus that a scalable business model plays a key role in new venture success. However, the factors that influence business model scalability have received little attention thus far. This paper aims to shed more light on this topic by introducing an explorative model of business model scalability. The proposed model is based on an analysis of (a) a wide body of literature, in particular including a broad range of studies from entrepreneurship, strategy and business model research and (b) data from qualitative research based on in-depth expert interviews with experienced entrepreneurs and investors. The model provides a basis for understanding the role of a scalable business model in new venture growth and identifies mechanisms for successful web-based business model innovations. This study serves as a starting point for further research on business model scalability and provides guidance for executives in assessing the potential of new business models.

Business development and marketing within communities of social service clients

Many users of social services in the United States live on low incomes. Those who receive Social Security disability benefits or who qualify for Temporary Assistance for Needy Families (TANF) benefits have incomes below the poverty line. Social service users often also face social and economic exclusion because of stigmatized conditions, disabling limitations, and skill and knowledge deficits. They are like other low-income consumers in some ways, but face additional challenges. This article views specific social service user populations as identity communities. In identity communities, community members share salient identities. Shared identity also may result from social and economic exclusion, and/or social stigma. Identity communities may be geographically bounded or unbounded. In either case, they have their own economies, which may or may not be recognized and developed. Focusing on the identity community of people with severe mental-health conditions, this article describes a methodology for designing business development projects within that community. The study describes the development of a replicable and potentially scalable business model, and how it was implemented in one case. The article concludes with a discussion of the implications of this market-based approach to meeting the needs of poor social service populations.

Starting, Developing and Growing a Medical Device Company

Yes, most industries including healthcare are suffering in this economy. But the longterm progress for healthcare is bright, and could provide great opportunities for those interested in starting or growing a medical device company.Besides creating or inventing new medical device solutions, there are opportunities in the manufacturing and servicing of medical devices, and in supporting patients and healthcare providers.There also will be plenty of opportunities in business services supporting this industry, from integrating devices into the envisioned electronic medical system to communication, sales and marketing, job education, and training and consulting.When starting a new company, the statistics can be daunting: 70% of small business startups fail in the first year and 70% of those left in the second year (91% in years one and two combined). With those odds, it pays to know the primary factors that can increase and/or decrease your chance of success. In addition to market conditions, other factors include:In addition, you must take into consideration industry-specific factors such as U.S. Food and Drug Administration (FDA) registration and approval process for medical devices and medical licensing for specific industry businesses.A business provides a solution for a market challenge and/or problem. If the value of your solution is higher than your cost, you have a profitable business. Therefore, increasing your value proposition and lowering the cost should be the focus for a profitable and successful business enterprise.Repeat production of the same solution (i.e., manufacturing) is one of the best ways to decrease cost. If you spend $1 million on research and development for a new medical device and only sell 1,000 devices, your R&D cost (not including production) is $1,000 per device. But if you sell 1 million devices, your R&D cost drops to $1 per device. A similar analogy applies to production, sales and marketing, operations, and other business costs.Therefore, rapid growth is your ability to scale up your business in all directions: R&D, production, sales and marketing, and operations. A scalable business model is the foundation for rapid business growth.Planning, developing, and implementing a scalable business model (think Microsoft, Google, and major device manufacturers' brands) require sophisticated skills. Most small businesses, however, need to grow at a more moderate scale. Focus on the following:Finally, good senior management decision making is paramount to business success. Often in a small business, the owner or founder is the sole decision maker. To avoid mistakes, bounce decisions off someone you trust, and brainstorm with family members, friends, colleagues, or team members who understand your business. Your best customers and suppliers can act as advisers. They will likely do it for free.Market opportunities in the medical device industry are limited only by your creativity, inventiveness, imagination, and access to resources. If you want to start or aggressively grow a business and are waiting for the right time, tip your balance and come aboard.