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2010). Companies benefit from this model’s implementation due to its focus on the customer’s ultimate needs, satisfying an entirely new set of needs the consumer may not have considered before being introduced to the product.Brainstorming Business ModelsBrainstorming the “What if” questions gives researchers the proper tools to develop a plan to prevent the company from missing windows of opportunities in the marketplace. Scalability describes how easy it is to expand a business model without 3
BUSI 690-D06: Business Model Generation Exercise 1increasing its cost base (Liu, 2006). In terms of the business model, a company may take the time to implement a plan that affectively assesses the extent of scalability the current model has, and the impact it is making in the market during its time of operation. One example of this is the Internet social media site, Facebook, which has risen as the leader in social media with a limited amount of engineers in its beginning stages of development. Although the platform only possesses a few thousand engineers, it has created enough value to reach millions of users and subscribers across the world today. Quickly adapting to the newly established business model efficient places a company in aposition to be more scalable in an ever so changing market environment.The question, “What if our market changes?” suggests to the company that at some point in the life cycle, the market is subject to change and a new transition in product and services may occur. Preparing the company for these changes increases the likeliness of a product surviving the transition and coming out strong with numbers in sales and revenue streams. Switching costs is a direct result of market change due to the