A successful business has adequate strategies that position them in the market. Strategic management is essential in ensuring the success of a company, as it offers a sense of direction and priorities that a business should focus on. Different academia has defined dimensions that affect a business strategy, which in turn influence the success of a company. One of these scholars is Derek Abell, whose model describes the business in three dimensions, which is utilized in various areas in a company. The model can also be used to explain the products that Readers’ Digest Association Inc. could send down its distribution channel to appeal to its subscriber base.
Abell’s model defines business in three dimensions. The first dimension is the customer groups served (Abell, 2014). This is described as who the industry serves. This dimension affects the target market, hence informing a business on the strategies to implement to satisfy the target market needs. This dimension also affects market choices.
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The second dimension as described in Abell’s model is the customer functions covered (Abell, 2014). This dimension refers to what the business is doing to meet the needs of the clients. In other words, these are the values offered to meet the needs of the customer groups identified above (Lindgren & Rasmussen, 2013). The customer functions covered include products and services provided over a period.
The third dimension according to Abell’s model is the technologies meant to satisfy the needs of the clients (Abell, 2014). Business operations are continually changing due to technological advancement. Businesses should, therefore, adopt technologies that best suit their activities to help meet customer needs. Furthermore, a successful business strategically keeps up with emerging technology to ensure that they stay ahead of the competition, thus positioning them in the market as industry leaders. Technological advancement ensures that client needs are met in a convenient and timely manner to enhance customer satisfaction.
Abell’s model of business is utilized in various areas in the industry. One of these areas is in the development of a mission statement (Abraham, 2012). The model guides this development such that a business prioritizes customers, who are the critical elements in any industry. A mission statement offers a sense of direction for businesses as employees work towards achieving that mission. Using this model to create a mission statement ensures that a company keeps up with emerging issues in technology to satisfy the needs of the customer groups it serves.
Moreover, the model is used to identify opportunities for the future success of a business (Abraham, 2012). Through the model, companies can identify gaps in the market in which they can maximize advantages and stay aloof of the competition. Furthermore, a corporation gets to identify its match and develop services to keep up with increasing competition. In this case, businesses get to understand and adapt to the market dynamics and evolution of business operations.
As mentioned earlier, Abell’s model focuses on customer groups served, customer functions covered and technologies meant to satisfy needs (Abell, 2014). Readers’ Digest Association could utilize this model to make their products appeal to the audience by making it amenable to mail order. One of the products it could utilize is e-books, which would require a subscription for clients to access (Reader's Digest, 2018). The other product is reading series which offers select editions on different topics, sent by mail. This would make it easier for its clients to access vast information online (Reader's Digest, 2018).
In conclusion, Abell’s model describes the business in a manner that pays critical attention to customers. Through this model, businesses can develop a mission statement that will lead to the utilization of resources to maximize available market opportunities. Furthermore, it facilitates competition identification and promotes services to keep up with the competition. Reader’s Digest could introduce e-books, reading series and excellent editions to utilize Abell’s model in its operations. Abell’s model is therefore crucial in developing business strategies.
References
Abell, D. (2014). THE PAST, PRESENT, AND FUTURE OF STRATEGY: BROADENING CHALLENGES; ADVANCING INSIGHT. Revista Ibero Americana De Estratégia, 13 (3).
Abraham, S. (2012). Strategic management for organizations. .. San Diego, CA: Bridgepoint Education, Inc.
Lindgren, P., & Rasmussen, O. (2013). The Business Model Cube. Journal of Multi Business Model Innovation and Technology , 135-182.
Reader's Digest. (2018). Reader’s Digest: Official Site to Subscribe & Find Great Reads. Retrieved from https://www.rd.com/
