Running head: Abell’s Business Model
1
Abell’s Three-Dimensional Business-Definition Model
Marvin Phelps
MGT 450 Strategic Planning for Organizations
Instructor Autumn Burton
June 8, 2015
Abell’s Three-Dimensional Business-Definition Model
2
Abell’s Three-Dimensional Business-Definition Model
Abell proposed the three dimensional business model. According to him, strategic
planning is the starting principle for any organization, and this process is usually defined in the
organization’s mission statement. A mission statement accords direction to the organization and
provides the basis for the further elaboration of strategies.
Three dimensions define the mission statement:
a
Customer groups (Who are its customers?)
b
Customer needs (What are their needs?)
c
Capabilities and technologies (How are their needs met?)
The mission statement should contain all the three dimensions (Abraham, 2012).
Customer groups
Marketing is all about the organization’s buyers. Without them, there would not be a
market. The first step is brainstorming about what kinds of customers or customer groups can
buy or use the product a product an organization intends to come up with. By having a thorough
knowledge of its customers or customer groups, then the organization can make targeted product
offers.
Customer needs
The organization needs to identify and list customer needs that are relevant to it. They are
determined on the basis of the product. A software manufacturer, for example, responds to the
needs by delivering software packages that can easily be installed by laypeople. They also offer
