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Business Model Redesign - Alphabridge - Finance & Strategy Consulting

Creating Your Own

Uncontested Market Spaces

In light of rapid disruption and constantly changing market dynamics, companies are more focused than ever on trying to stay relevant. They boost marketing budgets, become more agile, and do whatever it takes to put themselves in front of their competitors. While these efforts are necessary to stay in the market, we believe the outcome of such efforts is too often only incremental – with magnitude measured in basis points rather than multiples. We believe companies can do better if they focus on creating new markets that they themselves designed and set the rules. Our Business Model Redesign practice is created specifically to help companies achieve this.

Shifting Focus

When companies focus on outcompeting each other, they hurt the entire industry as profits are driven down. While consumers may benefit from lower price, products tend to become more homogeneous increasing search costs and reducing selections.

How We Help

Identifying Market Gaps

  • Where should we play along the value chain?
  • Which customers do we choose to serve and which of their needs should we address?
  • What features of a product or service should we offer?

We begin the BMR process by helping companies find answers to the above questions as they set the tone for the rest of the conversation.

Designing the Revenue Model

Creating value is not enough. Organizations need to also capture the value they have created. Leveraging our expertise in business modeling, we help companies find the optimal revenue model that generates attractive returns while ensuring market adoption and customer stickiness.

Analyzing the Value Chain

Value Chain Analysis involves figuring out how the business is configured to deliver on customer demand. It involves looking inward to identify the capabilities that need to be developed to address the value gap that was previously identified.

Laying Out the Cost Model

Value needs to be delivered at the right price. The cost model is therefore a critical component of the BMR process. Leveraging our Pricing & Costing expertise, we help companies configure their assets and cost structures in a manner that is conducive to delivering on their value proposition.

Building the Capital Structure

An organization’s capital structure must be compatible with its revenue and cost model to facilitate growth. We ensure this alignment by identifying the optimal mix of debt and equity that minimizes the cost of capital while maximizing free cash flow and profitability.

Becoming More Intelligent

Business model redesign is not static – it’s an ongoing process that needs to be calibrated as the external environment changes. Data must be collected and analyzed as part of this process. As such, we help companies design and develop the business processes and infrastructure to capture data and turn them into actionable insights so they can get the most out of their business model redesign journey.