No.8   July 1, 2000   "Arbitrage-Type" Business Models:An Innovative Strategy for Large Companies   NRI Business Strategy Consulting Department        In recent years the managements of large Japanese companies have been consumed by a sense of crisis at the realization that traditional profit mechanisms no longer work and that new ways are appearing to replace them. At NRI we call such new business models "arbitrage-type" models. They tend to exhibit the following three characteristics:    (1) By managing the risk of the services they offer on a customer-by-customer basis and    pricing the services accordingly, companies generate higher returns.    (2) Companies offer customers comprehensive solutions rather than discrete products.    (3) Companies have to update their services continually to prevent rivals from catching up. Contents I The IT Revolution and "Real-Time Pricing" II A Changing System of Intellectual Value III Growing Potential Opportunities for the "Solutions Business" 1 Property Management 2 Plant Maintenance 3 Lease of Rolling Stock IV Need for a New System of Management V Reorganizing Business GO to PDF