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Strategic innovation | Profit multipliers

Once analyzed three of the elements that cause that a business concept has capacity to generate wealth (efficiency, exclusive feature and coherence) we entered to analyze the fundamental element of this capacity. One is the multipliers of benefits that can cause that the yields go off dice in a while and, consequently, is worth the trouble to assume the risk of taking the concept ahead.

When we spoke of multipliers of benefits, we spoke of four great areas that we will analyze with more thoroughness in the next articles and that do that companies of recent creation like Google, Amazon, Ebay, or Meetic, to speak of companies that use the Network mainly, can spectacularly be beneficial in relatively short periods of times. First of them it has to do with a very determining concept of the economy in network and the intangible ones: the increasing yields. The second multiplier is based on the capacity to construct entrance barriers that they block to the competitors during a time. After all, if we have innovated and the model is successful, we will have the monopoly of the market by a brief period of time and, in the measurement that entrance barriers exist, this period will be longer. The third multiplying drift of the existence in the model of strategic economies (of scale, specialization or generalization). Finally, and essential in an economy in constant change, the fourth multiplier comes defined by the strategic flexibility from the model, is to say the possibility of changing on the march if therefore it requests the market.


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About the Author

Francesc Llobet is an Internet entrepreneur and a strategy business consultant in the fields of innovation, internet marketing and ebusiness.
Based in Barcelona, Catalonia (European Union), he is the founder of Sappiens.com, The Knowledge Community and Founder and CEO of Adverstore.com, Advertising for everyOne!. He maintains InnovationThink, eMarketingThink OnlineAdvertisingThink and A Startup Story, blogs where he writes on Innovation, Internet Marketing, Advertising and Startups. To know more..

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