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As the backbone of the global economy, micro-, small, and medium-sized enterprises represent up to 90% of business globally, accounting for 7/10 of worldwide employment and over 50% of global GDP. MSMEs’ livelihood and resilience mean the stability of the whole economy, not to mention their impact on communities and the environment. Still, becoming adaptable amidst the rapidly evolving business landscape remains a big challenge for MSMEs, and so do large enterprises. To celebrate the 2024 International MSMEs Day, let’s explore a flexible business model for MSMEs that will help maintain long-term competitiveness as it determines how a company creates, delivers, and captures value.
RECONFIGURE & REDEPLOY
Companies that can effectively manage their supply chains and flexibly reallocate resources in response to ongoing changes are better equipped to adapt to new challenges. With this, BRANDi’s case study highlights the significance of reconfiguring supply chains and redeploying resources for MSMEs to remain competitive and achieve sustainable growth. These practices hold even GREATer importance for MSMEs since they often operate with limited resources and must be agile to thrive in the market. During the process of business model adaptation, MSMEs must assess their core activities and strategically allocate resources to maximize efficiency. This involves reconfiguring the sourcing chain, such as speeding up production to meet demands and redeploying existing resources through the reuse or adaptation for new purposes beyond their initial intentions.
ADAPTATION OF BUSINESS MODEL
One of the businesses that best showcases a flexible business model is VR-PRO, BRANDi’s proud case studies from the GREAT to GROWTH Masterclass. VR-PRO is a professional manufacturer and installer of mosquito screens in Thailand with a nationwide footprint. After learning about how businesses can become more flexible by reconfiguring and redeploying, VR-PRO has revisited their sourcing chain and was able to identify the opportunity lying in their most important resource, which is screen installers. They began to collaborate with Thailand’s top housing management solution platform by allocating their installers and technicians with available capacity to provide free home inspections for the platform’s clients. Through this model, clients can enjoy the cost savings from the offering, and the platform can make a more accurate rental valuation based on gathered data from streamlined inspection with VR-PRO. On the other hand, VR-PRO can maximize existing installer capacity while expanding their market to the platform’s clients and enhancing their position. This business model adaptation has created a win-win situation, not only for both companies but also for the client.
ABOVE THE OCEAN STRATEGY
BRANDi’s own Above the Ocean strategy emphasizes the importance of businesses being flexible and adaptable, and not limiting themselves to a single industry or sector. By diversifying their offerings and exploring opportunities beyond their usual oceans, businesses can mitigate risks associated with market fluctuations and ensure their long-term survival. Through collaborations, organizations can leverage their strengths and expertise to create new products and services, access new markets, and pursue new growth opportunities—shifting a focus from “self” to the entire “ecosystem.”
MSMEs can maintain responsiveness to market changes by adopting a flexible business model to pivot to new challenges and seize opportunities quickly. Reconfiguring supply chains and strategically reallocating resources are effective approaches companies can utilize to navigate market complexities while securing their continued relevance.
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