Even the most successful business models erode over time.

The key to thriving under such tough conditions is adaptability. ... companies must continually update their business model ...

All of the possible methods of bringing customers value -- anything from more-efficient production lines to new products and services -- boil down to just three fundamental strategies:

* Industrial efficiency, which creates value by producing standardized offerings at low cost. Manufacturers and fast-food restaurants rely on this approach.

* Network services, which creates value by connecting clients to other people or other parts of the network. Telephone companies, delivery services and Internet middlemen such as eBay use this method.

* Knowledge intensive, which creates value by applying customized expertise to clients' problems. Law firms and medical practices are prime examples.

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