Abell’s Three-Dimensional Business ModelAbellproposed the three dimensional business model. The three dimensions according to Abell are: customer groups, customerneeds, and capabilities and technologies (Abraham, 2012). This model is used in developing a strategicplan for developing an organizations mission. Strategic planning is thestarting principle for organizations and the mission statement should containthese three elements (Abraham, 2012). Abell’sbusiness model could be used for developing a strong marketing plan.
Based on the dimensions, marketing fallsunder customer groups (Abraham, 2012). Whilebrainstorming, which is the first step according to Abraham (2012), whendetermining what customer base the company is looking to serve, and whatproducts the company could produce that their selected customer group wouldpurchase. Having a good understanding ofwhat the customer is looking to buy the company can make better targeted productoffers. By having a good understanding of the customer or customer groups theorganization can make targeted product offers.
Oncethe company makes a determination as to which customer group the will market towill be able to identify the customer needs and which products will be bestsuited. One example would be a clothing wholesale retailer who tailors specifically for persons of big and tall sizes. The same company could also find success indesigning large covers and tapestries because they are accustomed to handlingbulk size materials. Technologyis the last dimension in Abell’s model. Readers Digest Association, the publisher of the largest –circulation magazinein the world in 1992, The Reader’s Digest, developed a database ofsubscribers.
The magazine company usedthe database as a distribution channel to reach its customer populace whichaccording to Abraham (2012) was about 50 million households just in the UnitedStates. This made it easy for the magazinecompany to continue to reach their customers and keep their revenue andoperating profits up by selling condensed books and other publications, videos,and CDs through mail order. Reader’sDigest could use Abell’s model and to reach their customers with theopportunity to purchase other products besides magazines. The company could use its distributionchannel to sell coloring books, hanging posters, books on tape. By offering a few more products to theirtarget customers through their distribution the company could ensure to keeptheir customers interested, purchasing and keep their profits up. TheAbell three-dimensional business model is a process that helps companies keepfocus on their mission in targeting customers in their chosen market.
It also helps with the alignment of customerand how they can continue to meet their customer’s need all while continuing todevelop new products and find new opportunities that will keep their customerscoming back for more. ReferenceAbraham,S. C. (2012). Strategic management for organizations Electronic version.Retrieved from https://ashford.content.edu