17 Nov 2022

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Abell’s Three-Dimensional Business-Definition Model and Reader’s Digest Association

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Abell’s Three-Dimensional Business-Definition Model 

The Abell's three-dimensional business-definition model is used in the assessment or analysis of the scope of business operations. Some of the areas that the model could be applied include technologies, products, and the specific market the business targets. The first tenet of the Abell's three dimensional too for business is the customer groups which highlights the people who will be served by the company. Secondly is the customer need which assesses the consumer demands that the business seeks to satisfy. The third characteristic that makes up the model includes the distinctive competencies such as technology which the business highlights how they are going to be met. As such, Abraham (2012) illustrated that the three dimensions that help to put the company in the realms of its competitive scope and further reveals the extent of the business' competitive differentiation of its commodities and services. 

According to Abell, the strategic planning process is the starting point for a company's engagement in business. Additionally, the strategic process is steered by the mission statement which offers a sense of direction and focus. Abell asked three critical questions that form the basis of his three-dimensional explanation of a business (Lindgren, & Rasmussen, 2013). The first questions the customers of the organizations and the second asks on the method the organization can use to meet the needs of its consumers. The third attempts to questions the type of techniques that could be employed by a business in a bid to meet the customer needs. The customer needs lists down the demands of the consumers relevant to the business in question. Customer needs are linked the consumer benefits and product offering. 

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However, before evaluating the customer needs, it is critical to remain cognizant of the business’ customer groups. Abraham (2012) noted that a business could not occur if no people are purchasing the products or services they provide. It is incumbent upon every organization to find ways to segment its target customers which will enable them to sell products successfully to them. The third dimension talks about technologies which, in a broader context, refer to all available technologies used in creating a product until it reaches its market. With regards to its utilization, the Abell's three-dimensional matrix can be used in defining the business' scope at three different levels including the corporate level, the business level, up to the lower organizational ranks. 

Secondly, the model can also be used purposefully to describe the communicating changes experienced in business. The changes could be due to the business' offering moving through various stages of the product lifecycle. Most fundamentally, the model could be applied in describing the potential competitors in the market. As such, Lindgren and Rasmussen (2013) asserted that the business would understand who they are up against in the market. It could further provide a scope of the growth opportunities of an organization in an organized and systematic fashion enabling the business to keep track of the performance and implement necessary changes. 

Reader’s Digest Association 

In applying Abell's three-dimensional model to the case of the Reader's Digest Association which utilizes its strong customer base of over 50 million readers, it would be first essential to answer questions on the customers of the organization. The magazine first showed immense interest in family issues and remained popular to those who received an income of above $100,000 and had interest in a wide range of issues key among them including social and political issues to do with conservative and anti-communism (Pearson, 2016). Therefore, the 50 million subscriber database consisted of loyal magazine readers who had previously purchased products like books, and Compact Disks (CDs) through the mail order. The company subscriber database would, therefore, increase if the customers, who would like to order items through the mail, suppose the service is available, are considered. 

Using the Abell’s three-dimensional model, the second most vital question to ask about Reader’s Digest Association is with regards to the strategies that the organization applies in satisfying its customer needs. One of the strategies that the company has utilized in this regards is the coverage of high quality and diverse content that appeals to a majority of their consumer base. They focused on the production of special interest magazines such as “The Family Handyman,” “Travel Holiday,” “American Health,” and “New Choices for the Best Years” among others (Pearson, 2016). The company relies on the use of mail order in delivering its magazines. The products such as the books, magazines, and CDs have effectively been availed to the customer base using the mail order. 

The third part of the three-dimension model postulated by Abell answers the questions on the means of technology that would be used in enhancing the business activities. Improving the mail distribution channel to conform to the latest technological demands would ensure that the company is in a better position to avail new products to its broad customer base in various places of the world. Some of the new products that could take advantage of the improvement in the mail order include exclusive items such photographs, items of high value, handcrafted items, and other private things like bags and watches among others (Pearson, 2016). Alternatively, the company can also consider other distributional techniques that would improve efficiency which would not only enable delivery but guarantee large distribution of magazines, exclusive items, and CDs. 

References 

Abraham, S. C. (2012). Strategic Management for Organizations.San Diego, CA; Bridgepoint Education, Inc. 

Lindgren, P., & Rasmussen, O. H. (2013). The business model cube.  Journal of Multi Business Model Innovation and Technology 1 (3), 135-180. 

Pearson, S. (2016).  Building brands directly: creating business value from customer relationships . Springer. 

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StudyBounty. (2023, September 14). Abell’s Three-Dimensional Business-Definition Model and Reader’s Digest Association .
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