Outsource capital investments to partners

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Scalable Business Models: Growing vs. Scaling Drivers of scalability To create a scalable business model, it is essential to identify and understand the drivers of scalability. The four most powerful are: Light asset base Automated processes Cheap labor Prepare for replication Dangers of scaling up Scalability is not for every business and can even have some disadvantages: Scaling too quickly can lead to a decrease in quality, which can harm the customer experience and thus jeopardize image and reputation.


Scalable businesses are less complex, facilitating new entrants and competition, which can lead estonia phone number data to an exhaustive battle for markets and leadership. Economies of scale should be a result of growth and not be used as a driver of growth. Patterns of Business Model Scalability It is fair to list five patterns of business model scalability. They are: Scalable Business Models - Scalability Patterns Working with multiple distribution channels: By using different distribution channels for sales, companies can reach new customers and discover new opportunities.


Eliminating typical capacity constraints: by overcoming capacity constraints, whether physical or otherwise. : by creating open platforms that allow partners to shift their spending to strategic partners. Enabling customers and partners to take on multiple roles in the business: by collaborating with their strategic partners and customers through complex joint ventures or through more informal mechanisms such as core platforms. Creating platform models: by turning rivals into partners, letting them share the platform and in return generating revenue for the company.