Welcome to the Arkaro Insights podcast. This episode is based on original content developed by Arkaro. At Arkaro, we're committed to innovation in everything we do—including how we share our insights. We've utilised advanced AI technology to transform our written expertise into this conversational format, making our content more accessible and convenient for our busy B2B audience. What you'll hear is a two-person discussion generated through AI voice technology, designed to deliver our insights in a more engaging way than traditional reading. As we continue to evolve this approach, we genuinely value your feedback. Thank you for listening to Arkaro Insights, where professional expertise meets innovative delivery.
Full article: Business Model Failures: Why Good Products Can't Reach Customers

Why do brilliant products with compelling value propositions sometimes fail spectacularly in the marketplace? The answer lies not in the technology itself, but in the business model—the crucial "how" that bridges innovation to commercial success.
This deep dive examines the painful reality that technical excellence alone simply isn't enough. Through the cautionary tale of New Age Eats, which invested $32 million developing working cultivated meat technology only to shut down with zero revenue, we explore how regulatory hurdles and commercialization challenges can sink even the most promising ventures. The pattern repeats across industries—from agriculture to construction to aerospace—revealing three fundamental barriers that consistently trip up innovations: channel inadequacy, value chain resistance, and coordination complexity.
Channel inadequacy emerges when distribution pathways can't effectively deliver value, often because dealers face significant training burdens, brand disadvantages, and unfavorable economics compared to established products. Value chain resistance strikes when stakeholders actively block adoption because an innovation threatens their economic interests, as demonstrated by PVC piping's 15-year struggle to penetrate housing construction despite clear technical advantages. Perhaps most challenging is coordination complexity—when multiple independent players must align simultaneously, creating paralyzing chicken-and-egg situations where everyone waits for others to move first.
Organizations that address these business model challenges with the same rigor they apply to technical development gain a powerful advantage. McKinsey research suggests tackling these issues early can cut time to revenue by up to 50%. We explore five crucial practices: mapping your complete go-to-market journey, validating economics for all stakeholders, testing channel acceptance during development, developing multiple business model options, and continuously evolving your approach based on real-world feedback.
Ready to unlock your innovation's full potential? Visit arcaro.com to learn how we help companies navigate these challenges, or email Mark Blackwell directly at [email protected] for a free consultation on your specific situation.

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