The Problem Solution Business Model (The Art of Selling Problems and Solutions)

Welcome to the world of business sorcery – where companies wield the power to conjure needs out of thin air, casting spells that make us believe we can’t live without something we never knew we needed.

Imagine a world where problems are like clay, waiting to be sculpted into profitable solutions.

This is the controversial yet captivating idea that manufacturing needs to profit from their resolutions.

It’s a strategy that turns the conventional business model on its head, creating demands where there were none before.

But how does this wizardry work, and what ethical spells does it cast?

Unfortunately, this is not wizardry or wild imagination. It is a common business strategy.

So, step into this mystical world with me as I unravel the art of crafting crises to sell solutions and discover the morality behind this bewitching business strategy.

The Problem Solution Business Model

Problem Solution Business Model

The main idea of this business strategy is to create needs for profit, similar to a kind of magic.

Companies use this approach to make consumers want things they didn’t even know they needed.

They do this by making people feel like they have to have certain things.

This way of doing business is very effective, but it also makes people argue about whether it’s right or wrong.

Some people think it’s okay to boost sales this way, while others think it’s not fair to manipulate what people think.

In this article, I will talk a lot about this tricky way of doing business and look at all the details of this controversial but powerful strategy.

  • The key to this strategy is to tell a story that makes small problems seem like big deals, so people feel like they need certain things.

It’s like tricking people into thinking they have to have something.

This idea has worked well in many different industries, making people want things they didn’t care about before.

But even though it works, it also makes people argue about whether it’s right.

This article will explore the tricky ethical questions, showing the big difference between being good at business and doing the right thing.

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Strategy in Action

The Art of Selling Problems and Solutions

I have already written about this strategy in my article on Medium and provided an example of a small company that manufactures mosquito repellents.

To repeat the point on this website just imagine… a small company that sells mosquito repellent products like candles and bug zapper rackets.

They’ve been doing this for a long time, but they want to sell more.

So, they came up with a plan to make people scared of mosquitoes.

They create ads that show how bad mosquito bites can be and how dangerous mosquito-borne illnesses are.

They make people feel like they need something to protect themselves.

Then, they introduce a new gadget that they say will keep mosquitoes away.

People buy it because they’re scared of mosquitoes.

But some people find out that the gadget doesn’t work well in the wind. So, the company makes a new gadget that’s supposed to work better in the wind.

This is how the company uses a tricky strategy to sell more products.

Application Across Industries

This tricky strategy isn’t just used for selling mosquito repellents; it’s used in many different industries.

  • In the skincare industry, they make people feel insecure about their looks and then sell them creams that promise to make them look younger.
  • In the fitness industry, they make people want perfect bodies and then sell them products for losing weight and gaining muscle.
  • In the consumer tech industry, they make small problems seem like big issues, so people buy things to protect their devices and then they sell them upgraded solutions.

This way of doing business is good for making companies grow, but it’s also a bit risky because it’s hard to know if it’s the right thing to do.

Ethical Considerations

The strategy of creating needs for products or services that people don’t need is a tricky one.

It can make companies a lot of money, but it can also be unethical.

Businesses need to focus on ethics and not just profits.

They should prioritize customer satisfaction, be transparent about their products and services, and avoid misleading or false advertising.

Companies that prioritize ethics tend to be more successful in the long run because they build trust with their customers.

However, it can be challenging to balance business goals with ethical considerations. It’s a constant journey of reflection and adjustment.

Businesses need to strike a careful balance between truthfulness and transparency to accomplish their goals and sustain success.

Historical Success and Modern Economy Insights

The Problem Solution Business

Apple is a famous example of a company that’s successful at creating needs where none existed before.

Their gadgets like the iPod, iPhone, and iPad weren’t just cool electronics. They got people to want and “need” these devices, even if they had been fine without them before.

Apple made their products seem essential. This changed how people shopped and what they spent money on.

Other companies are trying to copy Apple’s strategy now. It shows that creating artificial needs can boost sales and shape what consumers buy.

These made-up “needs” now power much of the economy. Companies take what people already want and twist it to make them desire new things.

It works because people always want the latest innovation and the most convenient option. Companies tap into basic human nature – the wish to progress and have an easier life.

Successful businesses today don’t just give people what they ask for. They proactively get people to want new products and change their shopping habits.

This can be controversial though. It blurs the line between responding to real needs and manipulating desires just to drive profits.

Many industries use this strategy – skincare, fitness, tech, and more. It has a big effect on consumer behavior.

Companies need to think hard about whether this approach is ethical long-term for customers and markets. There’s a fine balance to strike here.

The key is being honest about real needs versus creating excessive new desires just to make money. But it’s a tricky line to walk.

Deciding Factors and Concluding Thoughts

Deciding whether to create artificial needs isn’t straightforward. Lots of factors pull companies in different directions.

Ambitious business goals and pressure to beat the competition and grow often tempt brands to stir up excessive new desires. But ethics should remain the guiding light in this decision.

The compass has to point towards values like transparency, authenticity, and caring about customer well-being. More than just using this strategy, brands must apply it wisely and morally. Business and ethics should go hand-in-hand.

As we wrap up this topic, it’s a call for companies to move forward, but carefully. They should explore innovative ideas but with ethics front of mind. The magic isn’t just in driving sales but in doing it in a way aligned with ethical business values.

This strategy’s power lies not only in getting people to buy more but also in shaping business models focused equally on financial and social responsibility. Companies today need to prioritize both success and contributing positively to consumers and society.

It’s complex, but ethics and long-term vision should lead the way forward.


The strategy of creating artificial needs to sell solutions is common but controversial in business today. There’s no doubt it boosts sales and influences how people shop. But it risks crossing ethical lines.

As we conclude, the takeaway is that companies should use this approach carefully and morally. They need to blend smart business and ethics.

There’s a delicate balance between making money and being transparent with customers. As times change, brands need to move forward but with integrity.

The key is fusing strategy and ethical virtue. This dancing between profits and principles drives positive, sustainable growth as the economy evolves. Prioritizing social responsibility with business objectives paves the way for conscious companies to lead the future.

So while inventing new needs can power success, ethics should steer how it’s applied. With ethical insight, brands can prosper responsibly for the long haul.


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