Paper Example on Abell's Three-Dimensional Business-Definition Model

Introduction

Abell's Three-Dimensional Business-Definition Model is used to define the mission of an organization (Abraham, 2012). According to the model, three dimensions define the mission of a business. The dimensions include the target customer group, customer needs, and capabilities and technologies. The customer groups dimension defines the customers the business is targeting (Abraham, 2012). Target customers may include individuals or corporations. It is essential since there can not be any market for goods and services without customers purchasing the commodities. Thus, it is critical for a business to understand its target market since it helps the firm gather the necessary knowledge to produce goods and services that satisfy the needs of the target customer group (Ferrell, 2016). In some cases, the business targets more than one customer group. In such cases, each group should be defined based on specifying characteristics and needs.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Once a business has identified its target customer group, it defines the needs of the customers it wants to fulfill. The problem solving or customer needs dimension outlines the functions the firm provides to the customers. Understanding customer needs is critical in producing or delivering quality goods and services and ensuring high levels of customer satisfaction (Furrer, 2016). The technologies dimension outlines how the business meets the needs of the customers (Hill & Jones, 2017). It includes the firm's capabilities, production, and marketing strategies, among other aspects. Technologies influence the ability of the firm to satisfy its customers (Hill & Jones, 2017). If a firm uses suitable technologies that meet the needs identified, it will gain competitive advantage. The suitability of the technologies varies depending on the nature of the target customer group and the needs of the market the firm wants to satisfy.

The model can be used to find new opportunities for growth. By identifying the target customer groups and listing customer needs, a corporation can identify the needs that are yet to be met (Furrer, 2016). Providing products and services that satisfy the unmet needs of customers can lead to the growth of the corporation. It is also used to gain a better understanding of the target customers and their needs. This helps a business to align its processes and strategies (technologies) to position itself to meet specific customer needs. For instance, a company cannot establish appropriate technologies if it does not understand the target customers and their needs.

Application of Abell's Model to Reader's Digest Association

Reader's Digest Association is the publisher of Reader's Digest, the world's largest magazine in 1992, with about 50 million subscribers. Apart from the magazine, Reader's Digest Association has been selling other publications, videos, CDs, and books, among other products. The association's customer dimension consists of loyal readers and other subscribers. Its customers are mainly those with incomes of more than $100,000 and are interested in conservative political and social issues. The customer needs' dimension of the association consists of books, magazines, videos, CDs, among other products and services. These products satisfy the needs of the association's subscribers. The association technologies dimension defines how it meets the needs of its subscribers. The association delivers the products through mail orders.

The Abell model can help Reader's Digest Association identify new opportunities or new products and services to offer customers. The new products the association can provide include exclusive and personalized items such as bags and watches, personalized photographs, PC and video games, customized mugs, among other items. The company can use existing resources and expertise in publishing to provide customized pictures and other things to customers. Besides, the new products can be delivered through the existing channel (mail order). It will help it expand the scope of its services thereby increasing its market share and enhancing its competitive advantage.

References

Abraham, D. (2012). Strategic Planning: A Practical Guide for Competitive Success. Emerald.

Ferrell, O. (2016). Marketing strategy. S.l.: Cengage Learning.

Furrer, O. (2016). Corporate Level Strategy: Theory and Applications. Routledge.

Hill, C., & Jones, G. (2017). Strategic management. Boston, MA: Cengage Learning.