Transformative Business Model

The video discusses a transformative business model theory by Cavadius and Locke, highlighting six key characteristics: personalized products, closed loop consumption, sharing costly assets, usage-based pricing, collaborative ecosystems, and market adaptation. These elements aim to increase customer value and reduce costs, creating strategic barriers to entry.

Explain the significance of a usage-based pricing strategy in transformative business models.

How do transformative business models allow businesses to adapt to the immediate needs of the marketplace?