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A three-dimensional business-definition model is a significant tool that businesses can use to enhance their productivity and competitiveness. It can help firms to analyze their target audience and its needs, as well as use effective techniques to sell their products or services. This paper reflects on the model and provides an example of how businesses can use it. The report also provides an analysis of products that Reader’s Digest Association can sell through its distribution channel.
Abell’s Three-Dimensional Business-Definition Model
Derek Abell used the three-dimensional business-definition model to describe the mission of organizations; this idea was presented in 1980 (Abraham, 2012). The dimensions include customer groups, customer needs, as well as capabilities and technologies, which are the ways through which a company can meet its clients’ demands. Thus, the business can be defined from the perspective of its offerings across segments, the differentiation of its products from those of competitors, and the firm’s scope of activity (Ammar & Ouakouak, 2015). Abell noted that firms’ mission statements should incorporate all of these elements (Abraham, 2012). This model can be utilized to define the company’s scope at the corporate and lower organizational levels, as well as to define the goals and values of competitors’ firms, and analyze the growth opportunities. In addition, Abell’s work can be used to describe the evolution of markets and changes in the business definition. The following example of the application of the model can be presented.
For instance, a businesswoman wants to start a company that sells cars. To do so, she needs to consider several significant factors before establishing an organization. She can use the three-dimensional business-definition model to identify the firm’s potential customers, their needs, and the strategies that should be implemented to meet them. Thus, using the first dimension, the businesswoman can conclude that the segment options include wealthy individuals and big families. Then, the owner of the company should understand what will motivate individuals to buy cars. In this case, clients’ needs may include the basic ones, such as going shopping to buy food or clothes and commute. The second dimension of Abell’s model can be utilized to identify all possible backgrounds of clients’ needs. For example, some customers may want to buy a car because of peer pressure or to obtain a desirable social status. The businesswoman can use the model to find a link between the segment and the need.
When these two notions are established, the owner of the company can define the tools she will use to meet the clients’ demands. For example, she can develop a marketing strategy based on the selected segment and choose the most effective types of advertisement. In addition, the businesswoman can develop other marketing techniques that will be specific to the particular group of people and motivate them to buy the company’s products.
Reader’s Digest Association
Reader’s Digest Association can be considered a powerful company as its businesses have provided it with a large number of supporters. One of these businesses is Reader’s Digest, one of the most popular monthly magazines in the world (Augustyn, 2017). It is possible to use Abell’s model for deciding what products can be promoted through the company’s distribution channels besides books, videos, and CDs. First, it is necessary to define the customer groups or the target audience of the organization. The majority of Reader’s Digest Association’s brands, which was recently renamed to Trusted Media Brands, are represented by websites, magazines, and other types of media designed for families (“U.S. – TMB,” 2018). The customer segment includes the individuals that are interested in home design and renovation, cooking, outdoor activities, and traveling.
Considering this factor, it is necessary to use the second dimension to outline potential clients’ needs. It is possible to say that the identified target audience may be interested in cookbooks, tools for decoration and building, items for traveling and outdoor activities, and utensils used for the table setting. The individuals may also need products related to hobbies, for instance, pieces of fabric or paper for DIY crafts. In addition, as the majority of the company’s brands are for families, clients may be interested in products for children. They may include books and educational toys, as well as clothing items. It is notable that all of these items may be sent through the mail. Using the third dimension, the company can decide how to market and promote its products. For example, as families may have limited time for shopping, the organization can present an online-store with free shipping. Using the website, clients can purchase necessary items and save much time.
Abell’s three-dimensional business-definition model is a multifaceted tool that the companies can use to identify their customer groups, clients’ needs, and the strategies that can use to meet these needs. Reader’s Digest Association’s brands are mostly designed for families. The target audience includes people interested in home design, cooking, traveling, and outdoor activities. It means that the company can sell products related to these needs through the mail and encourage customers to buy them online to save time.
Abraham, S. C. (2012). Strategic management for organizations. San Diego, CA: Bridgepoint Education.
Ammar, O., & Ouakouak, M. L. (2015). The business model as a configuration of value: Toward a unified conception. Journal of Business and Management Sciences, 3(2), 78-84.
Augustyn, A. (2017). Reader’s Digest. Web.
U.S. – TMB. (2018). Retrieved from www.trustedmediabrands.com/brands