MGT 450 week 2 assignment - When an organization is starting out or is planning on changing their focus to another direction it is a good idea to know

MGT 450 week 2 assignment - When an organization is...

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When an organization is starting out or is planning on changing their focus to another direction, it is a good idea to know who their target audience is and what they need. Abell’s three-dimensional business-definition model takes into account different customer groups, or who the organization tailors to, the customers’ needs, and the technology used to meet those needs. (Abraham, 2012) Understanding the customers’ needs, and how to reach them is a crucial part of any business, and having a strong business model like Abell’s can help guide a business to success. Identifying the customer group will help an organization structure their business model while ensuring they focus on the proper advertising revenue to get the best results. Abell’s three-dimensional business-definition model is a tool to analyze the scope of an organization. Discovering who will be served (customer groups), what their needs will be (customer needs), and how the needs are going to be met (Technology and competencies) are the areas that Abell highlighted. Understanding the customers’ needs rather than merely focusing on the industry will help organizations remain successful in an ever-changing world. Customer groups are the primary focus because without customers to buy a product there would be no market.
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