The business model dependency problem
No business stands on its own. Every business is dependent on something else in some way; the question is to what degree, and how stable is that dependency?
Transportation companies are dependent on highways and railroads and open waterways and skies.
A coffee shop may be dependent on the attractions around it (movie theaters, retail, restaurants, etc.).
Some tech companies are completely reliant on other tech companies.
How many companies have tried to make a business out of implementing ChatGPT in some way? These businesses are entirely dependent on ChatGPT. They can't create their own large language model to replace ChatGPT if needed.
What happens if ChatGPT closes its doors or hikes up its prices or restricts access in some other way? The company's business model is immediately affected. The company's strategy is entirely dependent on things as they are, and on those things staying the same.
You could make the same argument for transportation companies: Well, what if the government shut down all the highways? If that were to happen, then you’d be right. But that’s highly unlikely to happen. Possible, yes. Probable, no.
Many businesses are dependent on easy money and low interest rates. Some are dependent on capturing the effects of FOMO before consumers have a chance to realize how silly and useless the product is. coughNFTscough
Every business is dependent on something else. If nothing else, they’re dependent on government regulations that don’t force them to close their doors.
The assumptions upon which we've built our businesses are subject to change. But how likely are they to change?
We can't eliminate the business model dependency problem. We can only acknowledge it and decide how much related risk we're comfortable with.
Jake LaCaze finds it hard to depend on one company when they can disappear in the blink of an eye.
