1 unit makes money. “Lots of it.” The other unit, continually adjusts their pricing policies to accommodate for the customer. The contrast between these two very different business models makes me ponder what it would be like for one business to have two strategies for revenue. From Harvard Business Review’s case studies, Immanuel Geiger and Isolde Kraft take on opposite approaches when working. I believe that their models are not only a reflection of the products that they are making, but rather the nature of the people who are making them.
If this is the case, is it easier to merge a model or merge teams?
I would say it’s the latter. The values that people carry onto a team are rooted from far beyond their time in that business. They are derived from culture, identity, and interpersonal relationships. For that reason, I would not say it would be easy to merge companies but it definitely is not impossible. Reading the article and seeing how Geiger and Kraft grew closer through their understanding of customer needs was beautiful. I especially enjoyed the part that said, ” ‘Don’t you see,’ he added, ‘that
both of you are constantly wriggling away from your revenue models to meet this or that customer need or to respond to competitors? This random reactivity is crazy.’ ” When both individuals came together with their different ideas, the business became a hotpot of novelty. This drive for improvement is what makes a business successful.
