What is the Three-Dimensional Business Definition? The 3D Business Definition construction from Harvard Professor Derek F. Abell is a model you can use for determining the business of a company. The definition of a business is an issue which should not be taken lightly. In his book “Defining the business enterprise – The Starting Point of Strategic Planning” Abell says that the standard two dimensional way of taking a look at the business (products and markets) has serious flaws. Served Customer Groups. Types of customers.
Served Customer Functions. Customer needs. Technologies Utilized. The real way that the needs are being satisfied. The business scope of the example company in the figure on the right is thought as: providing CF1, CF2, and CF3 to / for: CG1, CG2, CG3, and CG4 using: T1 and T2. Origin of the Three-Dimensional Business Definition Model.
Resource Capabilities. For example: a small business could be defined as: manufacturing high value, low-priced electronic devices. Programs of Activity. Conventionally in terms of products offered and markets served. For instance: a business could be thought as: providing gadgets for the oil industry. Undifferentiated Marketing. An ongoing company chooses not to recognize the different segments in the market.
Advisable when there is considerable product homogeneity, or market homogeneity and/or at an early stage of the merchandise life routine. Differentiated Marketing. A company decides to operate in several segments of the market but designs split product and/or marketing programs for each. Advisable when competition is using segmented approaches to … Read more