Three-Dimensional Business Model

¶ … Dimensional Business Model Today, there are many pieces of literature that offers advice on the best way to conduct business and to analyze its results. Among a bewildering array of mission statements, business plans, and analyses, it is the duty of the business owner to make a choice that would best suit his or her business. For Reader's Digest Inc., for example, one might apply several business models to determine the best one.

The Abell model is an example of these that might provide significant insight about how Reader's Digest can move its business to a more modern, digital age.

The Abell model is three-dimensional in nature, so called because it answers three strategic questions (MOOC Modules Entrepreneurship, 2014): Who is the target customer group? What function do we provide for the customer? How do we provide for that function? These questions then imply three dimensions; the market group dimension (who is being served), the problem solving dimension (the needs being provided), and the technology dimension (how the needs are being provided).

By answering these questions, the model defines the business of the company, while also defining and identifying areas in which growth and diversification can be achieved. This growth and diversification must occur along the axis of the main business model in order to maintain the integrity of the company and its original purpose and mission. The three dimensions of this business model therefore provides areas of potential growth, change, and market response without changing the core of the business.

In some cases, however, it is also possible that the diversification has not sufficiently addressed the rapid changes in information technology today. This is particularly true in the case of traditionally printed publications such as Reader's Digest and any number of other printed magazines and newspapers in the world. For some of these publications, technology has simply developed too rapidly and the creativity of the company has lagged behind. This does not mean, however, that there is no salvation.

A company like Reader's Digest, for example, can use the three-dimensional business model created by Abell to find new and innovative ways not only for its continued survival, but also for its exponential growth. According to Vault.com (2014), the Reader's digest I a general interest magazine that has some 50 editions, has been translated into 20 languages, and operates some 60 branded websites. Nevertheless, the publication has suffered, along with many others of its kind, from the recent downturn in the economy.

In addition, as mentioned above, the fact that technology has advanced rapidly has left the publication somewhat behind in its struggle to simply stay afloat. What Reader's Digest has offered so far by way of serving its readers includes a wide array of materials. The company has offered market books, special interest magazines, music, videos, and financial health products. In the United States, however, the company has emerged from bankruptcy only by 2010.

When looking towards the future, I believe the Reader's Digest can usefully apply technology to breathe some new life into the past success of its business. Renewing its look at the three-dimensional model, the company's leaders can, for example, consider.