Abell’s three-dimensional business definition model is a tool that is used in the analysis of a business entity’s scope of operation. The tool is also very useful in market demarcation ( Lindgren & Rasmussen, 2013 ). This is because it clearly outlines the present activities as well an enterprise’s future strategic policies (Abraham, 2012). The three targeted dimension s include the customer groups (who the business will be serving), the needs of the se customers ( the customer requirement s tha t should be met ) , and technology (how the customer needs will be satisfied). Overall, th e model give s more attention to understanding the consumer as opposed to the industry , products, and services. Moreover , th e model assists in d efini ng a business through its scope of competitiveness ( whether broad or narrow) , and the depth of the differentiation of its products or services competitiveness ( Lindgren & Taran, 2011 ). Figure I below shows Abell’s three-dimension al business definition model.
According to Abell, the core mandate of a business entity is to devise a strategic plan. This is critical in ensuring that the business remains competitive (Abraham, 2012). Consequently, he used three dimensions as shown in the model to expound on this notion.
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The customer needs : This aspect of the model outlines the need s of clients , who are the primary focus of any particular business. The needs are highlighted based on the product s that a company is offering. Likewise, the needs are linked to the other benefits that the customers can enjoy
The customer groups : A market cannot exist in the absence of consumers who are responsible for buying the products or services being offered . This is why marketing is vital to the growth of a business entity . In this respect, market demarcation is crucial for the survival of a business entity. This is because it aids in deciding which segment should be targeted for the uptake of a particular product. Despite the demarcation, a business entity should aim to comprehensively understand the various target groups so as to offer them specific products. Further, this is vital in ensuring that all campaigns are targeted .
Technologies : This refers to all the technologies that are employed in creating a product a s well as putting it on t he market. These ma y entail both the research that has been conducted and the marketing campaigns.
Application of the model
Abell ’s three-dimension business definition model can be used in various ways in an enterprise . Some of the se applications include;
Describing as well as communicating the competitors ’ business organization. This definition is of great importance to a company due to need to comprehend who it is competing against .
Describing the scope of the business . This can be done at three levels which include business, corporate and lower organizational level s .
Giving a n organized and systematic analysis o f the opportunities for growth . It also helps in tracking them and ensuring that they are implemented at the most appropriate time.
Describing as well as communicating alterations in the definition of business. The alterations might be occasioned by the movement of a business entity’s offering through the product life cycle.
Providing a description of the evolving markets as well as communicating this trend.
Production of articles and digital drawings by Reader’s Digest Association
The Abell’s three-dimensional business definition model is applicable to Reader’s Digest A ssociation . This is an American family magazine about general interest whose readership in 1992 stood at 50 million. The business has sold to this audience such products as br aille , condensed books, digital audio, digital video, and CDs among others. In this case, Abell’s model can be used to explain other products that could be sent down the distribution channel, which would be amenable to mail order while appealing to its subscriber base. Firstly, there would be a need to understand who the business will be serving ( Lindgren & Rasmussen, 2013 ; Lindgren & Taran, 201 1) . This organization may opt to serve one or two divisions of its enormous database, which have the potential to purchas e the new products. Precise identification of the target market would be vital in ensuring that the right need is appropriately satisfied. S ome market segment options could include the parents, children, and youths. Thus, some of the products to be offered could include eBooks, clothes, beauty products, electronic devices, video games and toys among others.
Following identification of th e targeted market segment, it would be important to comprehen d the needs that would motivat e customers to purchase these product s ( Lindgren & Rasmussen, 2013 ; Lindgren & Taran, 201 1) . These could vary from the need to be more informed and well-groomed for adults to being entertained for the children and youth. Lastly, there would be a need to establish the products’ distribution channels. For instance, the eBooks could be distributed by e-mailing the interested subscribers. However, the other products would require an online store to be set up on the Reader’s Digest A ssociation ’s website. This would help the customers to browse through the online platform, select and buy the products of choice.
In coming up with an online store, the magazine would be seeking to mimic traditional shopping outlets such as retail stores and malls. Thus, this would be a strategic move given the increasing number of internet users globally. Moreover, the role of e-commerce in building global business interests is currently indisputable ( Lindgren & Taran, 2011 ) . Therefore, ultimately, the online store would enhance the user experience, resulting in more sales. In conclusion, Abell’s three-dimensional business definition model is important in not only enhancing an entity’s competitiveness but also increasing its bottom line.
References
Abraham, S. C. (Ed.). (2012). Strategic planning: a practical guide for competitive success . Emerald Group Publishing.
Lindgren, P., & Rasmussen, O. H. (2013). The business model cube. Journal of Multi Business Model Innovation and Technology , 1 (2), 135-182.
Lindgren, P., & Taran, Y. (2011). A futuristic outlook on business models and business model innovation in a future green society. Journal of Green Engineering , 2 , 1-10.
