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Business Model Design and Learning by Barbara Spencer

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How the RTR Rental Model Is Changing Industries

The essence of the RTR business model is the belief that the firm can change the way that women think about buying clothing—particularly for special events. Both leaders talk about the wisdom of investing in basics, like a little black dress that can be worn many times, while ­renting dresses for occasions, where one should never be seen with the same dress twice. In addition, they stretch the idea of a special event to include ­anything from formal dances, to first dates.

As I have said throughout this book, every now and then, a new ­business model comes along and transforms our old ways of doing things. Netflix did this in the DVD rental industry and as a result it forced Blockbuster and many ...

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