With changes in the Australian business environment, including rising real estate leasing costs, retailers need strategy and new customers.

We're experiencing the change in our law firm in advising retailers such as venues re-inventing themselves, comparison shopping websites and product marketing and distribution e-commerce websites.

Many factors are at work accelerating change, not least of which is the internet. However, rather than throwing up their hands in despair, some retailers are brainstorming solutions to survive present and future change. They have achieved this by reviewing their models and working with professional advisers and digital strategists.

We can see the future in the digital media trend-setting nation, the United States. In 2007 Walmart and Starbucks joined pure online retailers to also become digital entertainment service providers. Consider Starbucks.

Starbucks has a relationship with Apple, Inc for its "iTunes Wi-Fi Music Store", ie there's a contract between Starbucks and Apple.

Music pipes into Starbucks, Starbucks pipes your coffee, and at the counter, staff pipe up asking "Do you want music with that?".

Interestingly, the Starbucks selection at www.hearmusic.com is positioned away from mega hits. It feels baby boomer with Joni Mitchell, Diana Krall, Dylan and others. 

Starbucks also sells books and DVDs. Here we can't resist including the above "Disc Dominance" graphic. It reflects figures from the "2006 U.S. Theatrical Market Statistics" report of the Motion Picture Association. With the rise and rise of DVDs, Starbucks is on track to challenge music retail and video rental shops. In the next couple of years the managers and owners of these shops might have to prepare their "Honey I've lost the shop" speech. 

Consumers get the add-ons. The retailer may offer them as: (1) an additional revenue channel, (2) a special "free" offering, or (3) a trifle like a toy in a McDonald's Happy Meal.

This year's moves by Starbucks beyond coffee retailing recalls the history of McDonald's. McDonald's has for decades pushed an image and tagline of being a "family restaurant". Privately it has thought of itself as also an entertainment venue. It welcomes children with playgrounds, Ronald McDonald and trifle toys with Happy Meals. Starbucks is following the model. For adults it offers a playground of books, music and DVDs. That's entertainment.

If you'd like to discuss the topic further, here are 10 conversations about business models.