Models and Markets
I was interested to see how Siiquent and Teomik, despite both making advanced medical instruments, came to have such different business models. By adopting the razor-blade strategy of selling the machines for cheap and profiting off the large-scale sale of consumables at reasonable prices, Siiquent appealed to the hospitals and diagnostic labs that operated under strict regulations and tight budgets. Its approach turned reliability and compliance into selling points, emphasizing steady service and predictable costs. Teomik, on the other hand, focused on research institutions that cared more about cutting-edge performance than price. Its profits came from high-margin instruments, while consumables played a smaller role. Each model fit the expectations and funding structures of its market, which showed me how revenue strategy can evolve directly from customer needs rather than from product similarity.
To Merge Or Not to Merge
It’s clear that while both of these business models have been adapted over time to suit to their respective markets, their shared survival within the conglomerate has had drawbacks. The most striking example was the two sales forces calling on the same customers, which showed how a lack of coordination could cause confusion and inefficiency. Still, I think the solution is not to merge them into a single model but to clarify the boundaries between them. Each division already serves a distinct type of client with a proven approach, and getting a new customer in either market is much harder than keeping one. A sudden pivot to a unified model would risk undermining the trust and loyalty they’ve built over years of specialized service. Maintaining at least a semi-separate structure would protect that customer base while still allowing better internal alignment where their markets overlap.
What Would I Do?
If it was already decided that the two divisions have to merge, I would want to design a process that gives both sides equal say in shaping the new structure. I would start by having Isolde and Emanuel map their full customer journeys and revenue flows to make their differences visible rather than debated in the abstract. From there, we could evaluate some potential new business models based on specific criteria like customer retention, profitability, and operational clarity. Then, mixed working groups from both teams could prototype hybrid approaches and test them against those criteria. My role would be to keep the discussion grounded in evidence rather than preference, making sure that neither division’s strengths are lost in the push for unity. The goal would be a transparent process that builds trust and produces a merger plan that both leaders see as fair, even if it takes compromise.
