Final answer:
Transformative business models include six main features: disruption, customer-centricity, digitization, sustainability, collaboration, and agility.
Step-by-step explanation:
Transformative business models tend to include six main features:
- Disruption: Transformative business models disrupt existing industries or markets by introducing innovative products or services that challenge traditional approaches. For example, Netflix disrupted the traditional video rental industry by introducing a subscription-based streaming service.
- Customer-centricity: Transformative business models prioritize customer satisfaction and focus on delivering unique value propositions to meet specific customer needs. For example, Amazon's customer-centric approach with its vast selection, fast delivery, and personalized recommendations.
- Digitization: Transformative business models leverage digital technologies to create new business models or improve existing ones. For example, Uber's digital platform connects drivers and riders, revolutionizing the transportation industry.
- Sustainability: Transformative business models incorporate sustainability practices to minimize environmental impact and contribute to social and ethical causes. For example, Patagonia integrates sustainability into its business model by using recycled materials and donating a percentage of sales to environmental causes.
- Collaboration: Transformative business models foster collaboration and partnerships to leverage collective expertise, resources, and networks. For example, the Open Source Software movement relies on collaboration among developers worldwide to create and improve software collectively.
- Agility: Transformative business models are adaptable and quickly respond to changes in the market or customer demands. For example, Spotify continuously evolves its music streaming platform to cater to changing music consumption habits.