(1) Isolde heads Siiquent, which provides the tools and equipment necessary for gene-based diagnosis to hospitals and diagnostic labs. Isolde describes the business model as a “razor-blade” strategy, where they sell the equipment at a lower price and primarily profit from the products necessary to keep the machines running, usually at a price cheaper than the competition. Emmanuel heads Teomik, which supplies all materials needed for gene-based studies to labs and universities. They derive their profit from selling this research equipment at a higher markup, while they the materials needed to run their instruments at a much lower price.
(2) A single revenue model provides a clear, streamlined guideline to follow, and makes a simple approach to business operations. Thus, it is easier to complete essential functions like budgeting and strategic planning, and it’s easier to make cohesive decisions. With one rigid model, however, comes the inability to adapt to a dynamic market. A company would have a harder time meeting shifting customer needs and competing with new competitors in the space. Moreover, a dynamic strategy would encourage a company to remain innovative and adaptable, perfect to keep up with changing markets. With this, however, comes a less clear strategic direction and less cohesion, which make it more difficult to execute unified decisions.
