The firm uses
                                    existing capabilities
                                    they own, i.e.,value
                                    chain activities and
                                    underpinning
                                    resources. This type
                                    of business model
                                    innovation is such
                                    that existing
                                    businesses remain
                                    competitive. 
                             
                            
                                The firm needs a
                                    new model to create
                                    and capture value.
                                    Products with the
                                    same business
                                    model remain
                                    competitive but the
                                    capabilities are
                                    entirely different. 
                             
                            
                                Product/services
                                    rooted in the new
                                    business model
                                    render products in
                                    the old business
                                    model as
                                    non-competitive. The
                                    capabilities in both
                                    the business model
                                    are same but
                                    innovative business
                                    model outpowers the
                                    old businesses.
                             
                            
                                The core capabilities
                                    of the old business
                                    model is extremely
                                    different and are
                                    largely useless for
                                    the new business
                                    model. The rule of
                                    the game is changed
                                    both capability-wise
                                    and market wise. 
                             
                            
                                Many business
                                    model innovations
                                    can start up as
                                    regular and can
                                    quickly move to
                                    capability building,
                                    position building, or
                                    revolutionary.