German firms urged to prioritize business model over product offering

Business advisers highlight that many German companies focus almost exclusively on their products or services, tweaking features, expanding ranges, or increasing marketing spend. When economic conditions tighten, firms often react by raising prices or cutting costs, yet the underlying issue is frequently a misaligned business model.

A sustainable model must be built around a clear understanding of the target audience, their decision‑making logic, and willingness to pay. Companies are urged to analyse customer problems and expectations first, then adapt the business model accordingly. The article illustrates this with a nail‑studio example: in a downturn, simply raising prices can drive customers away, whereas a model that diversifies services or repositions the offering can better withstand tighter budgets.