Competition in a free market economy favors the lowest cost business model as markets mature and price-driven shoppers grow in size. Design a business model that delivers unique benefits, on the other hand, and you must also focus on efficiency. Because customers only pay price premiums for unique benefits, any inefficiency costs come right off [...]

Netflix’s stock price is falling, fast. My take is that the decline has much more to do with the long-term viability of its business model than the stated cause – recent defections in subscribers owing to a change in its pricing formula and a (since averted) break-up of the company into two parts. Here’s a [...]

Blockbuster, the largest retail chain for renting and buying videos, is scrambling. Watching movies at home has become as natural as watching TV shows, and internet speed is steadily increasing. The two forces have created new opportunities for connecting viewers with the videos they want to see. New industry entrants grabbed these opportunities as new [...]