3 Dimensional Business - Explained
What is the 3-Dimensional Model for defining a business?
Written by Jason Gordon
Updated at April 12th, 2023
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What is the 3 Dimensional Business Model?
The Three Dimensional Business framework, proposed by Professor Derek F. Abell, is used to define the business of a company.
How is the 3 Dimension Business Framework Used?
The model defines a business along 3 axes:
- Served Customer Groups. Categories of customers. (WHO)
- Served Customer Functions. Customer needs. (WHAT)
- Technologies Utilized. The way that the needs are being satisfied. (HOW)
The scope of the company is defined by:
Providing ___________ to/for ___________, using ___________.
What is the 3 Dimension Business Framework Important?
The model expands upon the traditional approach to defining a business based upon the business’s resource capabilities, products sold, and/or the markets in which they sell.
Additions to the Product/Market Grid?
Profession Phillip Kotler proposed to add Differentiation as a supplementary measure to the Product/Market GRID, distinguishing between:
- Undifferentiated Marketing. A company chooses not to recognize the different segments in the market. Advisable when there is substantial product homogeneity or market homogeneity and/or at an early stage of the product life cycle.
- Differentiated Marketing. A company decides to operate in two or more segments of the market but designs separate product and/or marketing programs for each. Advisable when competitors are using segmented approaches to the market. And/or at later stages of the product life cycle.
- Concentrated Marketing. A company tries to achieve a large share of one or a few submarkets. Advisable when the company resources are small and/or when competitors are using segmented approaches to the market. And/or at an early stage of the product life cycle.
Related Topics
- 3 Dimensional Business Model
- What is Strategy?
- What is Business Strategy?
- What is Management Strategy (Strategic Management)?
- Types of Business Strategy?
- Competitive Advantage
- First Mover Advantage Definition
- Organizational Dynamics
- Synergy - Definition
- Business Model Overview
- Business Model Canvas - Explained
- Razor Blade Business Model
- Click and Mortar Model
- Transformative Business Model
- How Management Develops a Strategic Plan
- Mintzberg's 5 Ps of Strategy
