Finding Strategic Opportunities

Finding Strategic Opportunities

MGT 450 Strategic Planning for Organizations

Finding Strategic Opportunities

There are several things required in developing and maintaining a successful business. In order to remain relevant, companies must identify their target audience and then give them what they need. Abell’s three-dimensional business-definition model helps organizations accomplish this goal. This paper will address Abell’s model and explain where it can be utilized. We will also use Reader’s Digest as example of how to utilize the model to identify how to incorporate additional products into their business strategy.

Abell’s Three-Dimensional Business-Definition Model

Abell’s Three-Dimensional Business-Definition Model is important for startups and current companies seeking new opportunity . Abell’s model is used to analyze the operational scope of a business. This helps a company develop a strategy to move into the future . Abell’s Model suggests that there are three things that define a business, who is the customer, what is needed, and how is that need satisfied .

A product is nothing without a customer base. It is important to identify who the target audience is and then learn as much as possible about them. The process of gathering information helps identify the customer’s needs. If the product being developed does not meet the needs of the target customer, then the product will not serve a purpose and it will not sell. Once the customer has been identified and the needs have been determined, the next step is to figure out how to develop and deliver the product . An example of this process would be Nike, they have identified several different customer bases, one of them being runners. Runners need comfortable shoes that can withhold a beating. They need to be light weight, while still offering an adequate amount of support. Nike must innovate and design a shoe that meets these requirements, then they need to produce and distribute these shoes across the world for runners to purchase.

Reader’s Digest

Reader’s Digest appeals to many different people for various reasons. It is considered a general-interest magazine that focuses on many different topics, health and food are a few examples. Reader’s digest has many suggestions for healthy eating, diet and weight loss. The company should analyze and target this specific audience for the next evolution of their business. Nobody wants to be unhealthy or overweight, but there are many reasons why people get that way. This audience may fall into several categories, they may be lazy, uneducated or even to busy to take care of themselves. Reader’s Digest could give this target audience exactly what they need by creating a mail order pre prepped meal plan. It would offer healthy, quick and easy to prepare options that taste great. Whether it is healthier eating habits or weight loss these customers are looking for, a customized plan can be created. No grocery shopping, no guessing what is good and bad and no more excuses. Reader’s Digest would need to invest in professional nutritionists to develop the meal plans, cooks to make the food and a team to package and ship them safely. By utilizing their huge subscriber base, they could post ads and send mailers to all of them. This would catch the interest of those struggling with this problem and could be very successful if kept affordable.


For a business to be successful, they must stay in tune with who their customers are and maintain the ability to offer solutions for their needs. As discussed, Abell’s three-dimensional business-definition model helps organizations achieve this. In this paper we addressed Abell’s model and explained where it can be utilized. We used the model on Reader’s Digest and identified how they could incorporate a new strategy in their future business.

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