What is the emerging “hybrid business model theory”?
For one thing it does not involve Tesla, Toyota or Linkin Park. This new concept is still being defined and true to its own descriptor a “theory” which implies it is still in the testing phase. This concept as it applies to the operations of a business are not the same as a traditional merger, in this case both entities remain individual and not consumed by the other. There are limitless partnering opportunities with taking advantage of hybrid operations for as long as and as much as contributions are necessary or desired.
Taking from the concept of team, individually we are strong, together we are unstoppable.
Comparable to the hybrid motors operation and like a marriage of sorts, when one (system, department or individual) is weak the other is strong and compensates. This non cannibalistic approach in business addresses the evolution of industries, staying competitive and maintaining a reputable and sustainable progressive corporate image. According to a recent article in the Harvard Business Review entitled “Embrace the Business Model that Threatens You”, which highlights the Amazon versus WalMart (and Target) free shipping and store pick-up options for consumers. While WalMart has now effectively increased its online sales since implementing this strategy, it has in turn caused Amazon to open physical spaces called “lockers” for order pick-up since Amazon occupies no real physical retail space. In this scenario the customer benefits and is able to choose an” e-tailer” based on preference and convenience, not just price.
“Keep your friends close, but your enemies closer” was the advice given by the great warrior Sun tzu, or was it Michael Corleone in the Godfather? Either way both are quotable legends and the advice is worth its weight in Rhodium (more precious than gold).
Entertainment, multi-media and medical industries are predominantly taking advantage of this potential hybrid theory, effectively turning an obstacle into an opportunity. In the entertainment industry Netflix addressed the growing constraints felt in its distribution handcuffs prompting their creation of their own original content, thereby recapturing waning interest and expanding its offerings, and evolving into not just a distributor but a producer. In the medical field blending profit with purpose is the highest goal of the “hybrid business model”, where the business of making money is inseparable from social goals.
Establishing a division of your company that deals specifically with social goals is a proactive way to maintain or establish integrity and demonstrate perseverance in today’s technologically evolving world, setting you apart from your competition. Fortune 500 companies are not alone in dealing with obstacles, the numbers may be different, but the issues are most often the same. Responding to a changing clientele or customer is part of your survival, and it’s never been easier to communicate directly within the supply chain and demand accountability. Utilizing a hybrid model for your business may be appropriate if you are driving your business on “cruise control”. As in the lyrics composed by the band Linkin Park, “Things aren’t the way they were before”, now is the time to step on the gas or charge up completely so you are not stuck in the slow lane and being passed by your hybrid competitors.