Can One Business Unit Have Two Revenue Models?

Posted: 21 Feb 2015

See all articles by Marco Bertini

Marco Bertini

ESADE - Ramon Llull University

Nader T. T. Tavassoli

London Business School - Department of Marketing

Date Written: March 1, 2015

Abstract

Peter Noll, a pharmaceutical company division chief, ponders the varying business models of two units that have just merged. Both have for years employed flexible, inventive strategies to good effect, but Noll is inclined to impose a single model on the combined entity. The two unit heads, however, make compelling arguments for being left to do their business as usual. What choice should Noll make? Expert commentary comes from Bodo Eickhoff, of Roche Diagnostics Deutschland, and Eric Achtmann, a tech investor and corporate adviser to Costa Coffee.

Keywords: Pricing, revenue models, competitive strategy

Suggested Citation

Bertini, Marco and Tavassoli, Nader T. T., Can One Business Unit Have Two Revenue Models? (March 1, 2015). Harvard Business Review, Vol. 93, No. 3, 2015. Available at SSRN: https://ssrn.com/abstract=2567336

Marco Bertini (Contact Author)

ESADE - Ramon Llull University ( email )

Avinguda de la Torre Blanca, 59
Sant Cugat del Vall├Ęs, 08172
Spain

Nader T. T. Tavassoli

London Business School - Department of Marketing ( email )

Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom

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