The Problem Is Not The Product, But the Business Model

A robust business model is paramount for a company’s success, even more so than factors like strong leadership or execution alone. The business model, encompassing how a company creates, delivers, and captures value, is considered “supreme” because it dictates the fundamental logic and operations of the business.

Essentially, even with the same products or services, the business model adopted can drastically impact a company’s performance. Freemium or subscription business model on the same products? Whatever you decide will re-align how factors of production within that firm will be used.

So, most of the time the problem is not the products or the services. But the business model upon which they’re being taken to the market. And with that understanding, boards of companies are tasked to find CEOs and executives with capacities and knowledge to discover and operate the right business model, at any point in time.

Mr. A was fired as he supervised 8 straight quarters of declining revenue. Since Mrs. B took over, after the first two quarters, the revenue has been growing quarter by quarter. Check well, same products and largely the same team. What happened? Mrs. B possibly changed the logic of the firm by pushing the destiny of that firm onto a new business model.

Good People, invest in your business model. Yes, spend time inventing the best one for your company and market. That web product – do you monetize via freemium or subscription or ad-based? As you evaluate, you are building the value logic of that company (yes, how you make money), and your decision must consider the market, the customers, the competition, etc

Register for Tekedia Mini-MBA (Sep 15 – Dec 6, 2025), and join Prof Ndubuisi Ekekwe and our global faculty; click here.