Essay Example on Abell's Three Dimension Business Model









Title Abell's Three Dimension Business Model Name Strategic Planning for Organizations Instructor Michael Williams Date 14 January 2018 Abells Three Dimension Business Definition Model Within any industry it is important to understand the needs and desires of the consumers because it helps companies deliver services and excellent quality products to their buyers The number one rule is to provide good customer service to keep customers happy According to Ward 2017 good customer service is all about bringing customers back and about sending them away happy happy enough to pass positive feedback about your business along to others who may then try the product or service you offer for themselves and in their turn become repeat customers para 2 This paper will discuss the Abell's three dimensional business definition model and where it can be utilized This model concentrates on the customer's desires in three parts which are whose needs will be met what are those needs and how those needs will be met Also I will be focusing on The Reader s Digest Association using the Abell s model I will examine other products that would appeal to its subscribers and could be send down this distribution channel which would be amenable to mail order Toolshero 2017 states the strategic planning process is the starting principle for any given organization and this process is defined in the mission statement A mission statement gives direction to the organization and provides the basis for further elaboration of strategies para 1 Martin 2015 states 

This process in turn is driven by the mission statement which provides direction focus and the basis for strategies to be further elaborated and driven down Abell used three key questions as the three dimensions on his model and these are the foundation for the formulation of the mission statement itself para 3 According to the text Derek Abell proposed that the mission of a corporation is determined by three dimensions These are 1 customer groups or who the company serves 2 customer needs and 3 capabilities and technologies or how the company will meet the customer needs Abraham 2012 section 3 2 Hogeschool n d states By using Abell's Business Definition Model we can gain more insight in the customers needs and wants pains and gains anxieties and desires whatever you want to call them to fine tune our value proposition to the right buying reasons para 1 The Abell's three dimensional business definition model emphasizes on the need to identify groups of customers to achieve the main goal which is sell products and making a profit Toolshero 2017 states In the Abell Model all customer needs that are relevant to the company are identified and listed These customer needs are determined on the basis of the product as a result of which a link is made to customer benefits para 1

This is shown in the first step of the model According to Abraham 2012 The first step is to brainstorm different kinds of customers or customer groups that might use or buy the product Then brainstorm different products that could be made using the company s skills capabilities and technologies section 3 2 Hogeschool n d We need to understand why customers want to buy into our offering so we can tweak our communication to convey the right message to the right customer This has everything to do with positioning image building relationships and your sales pitch value proposition para 1 According to Abraham 2012 Reader's Digest has the largest circulation magazine in the world in 1992 around 28 million readers It has used that database to sell various products such as condensed books and other publications videos CDs and so on In 1992 66 7 of its revenues and 91 8 of its operating profits came from selling products through mail order its database distribution channel far higher percentages than its flagship magazine section 3 2 Using the Abell s model to show the three dimensions for the Reader s Digest is as followed The who would describe the subscribers of the company who are loyal to the magazines and have already made purchase through mail orders The how would be the mail order The company heavily depends on mail order for the delivery of their products Lastly the what is the actual products which are magazines books CDs etc I think some other products that would appeal to its subscribers and could be send down this distribution channel would be apparel special photographs such as views and wildlife bags novels and small keepsakes such as key chains or wrist watch 

The company could start by sending loyal customers samples of these items and in turn hoping for more or new business All in all within all businesses it is important to understand the needs and desires of the consumers The use of Abell's Three Dimensional Business Definition Model helps with strategic planning and provides a tool to achieve customer satisfaction It allows companies to examine why the customers want to buy their products and also allows them to tweak their communication to convey the right messages to consumers Within this paper we have discussed The Reader s Digest Association using the Abell s model Also I have stated other products that would appeal to its subscribers that could be sent down the distribution channel of mailable orders

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