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:

1. Served Customer Groups. Categories of customers. (WHO)
2. Served Customer Functions. Customer needs. (WHAT)
3. 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.