A carefully planned budget, solid liquidity and financial planning, as well as efficient controlling including cost control, post-calculation and key performance indicators (KPIs), are good tools for recognizing developments in good time.

A company can protect itself against risks by diversifying its business, for example by tapping into new markets, products or services.

A lack of adaptability can lead to a decline in revenue, as the company may no longer be able to meet its customers’ requirements. This may be reflected in complaints or customer churn, for example.

A company that does not adapt will continue to work in the same way as before despite technological progress – i.e. with inefficient processes or outdated technologies. This will lead to higher operating costs compared to competitors and have a negative effect on profitability.

Companies that fail to innovate or adapt may miss out on opportunities to tap into new markets or develop new products and services that could drive their growth.

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Corporate strategy

Adapting your business model to the future

Q: Building up of reserves

Ensuring sufficient liquid funds and creating reserves can guarantee financial stability in uncertain times.

Q: Risk analysis and management

A risk management plan assesses internal and external risks and defines risk mitigation measures. This means that a company is better prepared for unforeseeable events. As well as examining risks, opportunities, strengths and weaknesses should also be assessed on an ongoing basis (SWOT analysis).

Q: Reason 3: regulatory changes

New laws, regulations or political decisions can strongly influence markets. For example, strict regulations can put smaller companies at a disadvantage because they do not have the necessary financial resources or employees to meet these requirements.

Q: Reason 4: global challenges

Global events such as recessions and pandemics can have an impact on local markets too. Geopolitical upheavals and conflicts accompanied by tariffs, sanctions or wars, for example, affect supply chains, trade and transport relationships often far beyond the regions and parties directly affected. Forward-looking observation of these trends helps to minimize risks.

In a dynamic economy, no business model is made to last forever. Companies should regularly rethink their model in order to successfully integrate innovations, technologies and new market requirements.

06 Apr 2026 8 min read

Jürgen Mayer

UBS Credit Solutions

Companies should regularly perform a critical review of their business model.
Market changes, technological progress, regulatory changes or crises can have a considerable impact on the success of a company.
Company owners who recognize these changes early on and continuously optimize their business model will strengthen the resilience of their company and ensure its long-term success.

Times are changing – and so are the prospects for the success of companies’ business models. If the market, its environment or the company’s own capabilities change, the business model must be modified. The process of putting a business model to the test involves several steps for companies:

Conducting an analysis

A thorough internal – and possibly also external – analysis of the company’s strengths, weaknesses, opportunities and risks can help to determine what resources and capabilities are available for adapting the business model. This SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) is a strategic planning tool that can be used across all industries.

Setting clear goals

It is important to set clear goals and milestones for adapting the business model, for example in terms of structure, culture or employees. These goals should be specific, measurable, achievable, relevant and time bound.

Implementation with external advice

The advantages of obtaining external support for change management are obvious: Change experts bring specialized knowledge and experience to the table. They understand the complexity and interactions of change, can ask the right questions and are familiar with proven methods that will make the transition as smooth as possible. They can also act from an objective and unbiased perspective.

Conducting regular reviews

Companies should continuously examine how well the new model is working and make any necessary adjustments to ensure that it meets changing market conditions. Identifying and analyzing trends and new customer requirements early on makes it possible to tap into growth potential.

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There can be several different reasons that prompt a company to question its existing business model.

Reason 1: market changes

Depending on the sector, every market goes through cycles of growth, maturity and sometimes even contraction. This always results in new market dynamics. Understanding these cycles helps companies to revise their strategies and be successful in the long term.

If new competitors emerge, this can threaten the market share of established companies. This is because these newcomers often introduce innovations, services or business models that challenge the status quo. It is crucial for existing companies to observe new market players – and to adapt their own product ranges or strategies if necessary.

Customer needs also change. Something that is in demand today may be outdated tomorrow. Companies must remain in constant contact with customers and, if necessary, conduct market and customer research in order to adapt their products and services in a targeted manner.

Reason 2: technological developments

New technologies and innovations can turn the business world upside down. They open up new possibilities for products and services, simplify processes and modify customer relationships. Disruptive technologies can quickly change or replace established processes. For example, if companies integrate digital technologies such as artificial intelligence (AI), automation and online platforms into existing business models, they can benefit from opportunities to increase efficiency and generate new sources of income. If digitalization does not succeed, business models may come under pressure.

Reason 3: regulatory changes

Reason 4: global challenges

Reason 5: internal reasons

Continuous further development of companies is also advisable if there are internal changes in structures or dynamics. Modifications within the workforce and the world of work can oblige companies to adapt their business model. New managers, for example in the event of cooperations or takeovers, bring fresh ideas and goals with them. If the management of an SME makes the wrong decisions, their mistakes must be corrected afterwards. This sometimes goes hand in hand with the reorganization of the business model and puts a strain on revenue.

It is not easy for entrepreneurs to always make the right decisions for their company. It is difficult to keep an eye on the competition while recognizing important market changes at an early stage. That is why many companies apply a strategic risk management system to monitor the most important company-specific risks. This is planned by the company management and anchored throughout the company. For large companies, this precautionary measure is even required by law. Scenario analyses provide management with a basis for better assessing the impact of environmental, social or regulatory risks.

The consequences if risks are not recognized

Companies that fail to adapt their business model early enough run the risk of not being viable in the long term. The following direct consequences may arise:

Drop in revenue

Loss of competitiveness

Rising costs

Loss of innovation

The ability of companies to deal with and recover from challenges, changes and crises falls under the term “resilience”. Resilient organizations are less at risk of being overwhelmed by change. They are also able to react quickly to unforeseen events. A resilient new business model is created when business strategies, plans and processes are continuously reviewed and adapted.

Tips for adapting a business model to ensure greater resilience

Building up of reserves

Efficient finances

Risk analysis and management

Diversification

Flexibility and agility

Companies that are flexible and agile are better at adapting to changing circumstances. A corporate culture that welcomes change and can react quickly to new challenges is a valuable asset. In order to mobilize employees as idea generators and drivers of innovation, companies need to implement training, further education and change management measures. A culture of error in a company encourages employees to develop and implement their own ideas.

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Questions? Get in touch with our experts

It is vital for companies to focus on their customers. Companies can find out what customers want by carrying out targeted interviews to obtain customer insights, for instance. Qualitative and quantitative market research and comparisons with competitors and industry standards can be used to identify new needs and trends and measure success. Companies can implement management tools to clearly visualize the business model and its components.

They can check the feasibility of ideas and initially test concepts on a small scale in pilot projects before gradually integrating them into the company’s daily business and enhancing them on the basis of feedback. This process of iterative improvement requires ongoing monitoring and the definition of measurable targets and KPIs. It can be useful to invest in modern infrastructures such as clouds and digital data management, and to take these investments into account in long-term investment planning via technology roadmaps. Companies should pay attention to the scalability of their processes so that they can flexibly adapt their business to new dimensions.

As sensible as it may be to define clear structures and responsibilities, it is also necessary to question the organizational structure from time to time. Ideally, the chosen structure should enable a company to dynamically transform its business model while maintaining a balance between creativity and feasibility.

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