Increasingly, established companies in industries as diverse as airlines, media and banking are seeing their markets invaded by new and disruptive business models. The success of invaders such as easyJet, Netflix and ING Direct in capturing market share has encouraged established corporations to respond by adopting the new business models alongside their established ones. Yet, despite the best of intentions and the investment of significant resources, most companies are unsuccessful in their efforts to compete with two business models at once. The primary solution proposed to solve this problem is to keep the two business models (and their underlying value chains) separate in two distinct organizations. Sensible as this argument seems, the separation solution is not without problems and risks. If separation is not sufficient, what else should companies do? From 2007 to 2009, we studied 65 companies that attempted to compete with dual business models in their markets. By comparing the experiences of the businesses that did so successfully with those that failed, we have identified five key questions that companies need to consider if they are to improve the odds of success in competing with dual business models in the same industry.