The Abell model is made in two moments. The first analysis (Current Activities – Business Scope ) maps out the current situation to gain insight into the existing markets. In the second analysis (Entire market – Business Domain ) you analyze the markets in which the company is not yet active.
You add this to the current analysis. In this way you sketch a clear picture in which areas the company will develop.
Do I need the Abell model?
You use the Abell model to gain insight into the market in which the company is active. The model is also used to approximate available areas that the company is not yet in. If you are looking for new markets, use the Abell model.
Which variables do I need?
All options are scored per axis. You map the company using 3 factors. For each axis you can ask yourself the following question:
- Customers: Who are the customers to whom we want to sell our product or service?
- Need: What do our customers want to achieve with this product or service?
- Technologies: Does the organization meet certain market needs?
How can I apply the Abell model?
When the current analysis has been completed, the desired situation is identified. In order to use the model effectively, a question is asked for each factor to realize the desired situation:
- Customers: Which new customer groups with the same need can we serve even more?
- Need: What needs do we not yet serve for existing customer groups?
- Technologies: What technologies are still available to meet existing needs of current customer groups?
Abell Model example
This example concerns a wholesaler in sustainable garden items. The colored cube represents the current customer groups, needs and technologies. The gray texts indicate where there are potential opportunities for the company.
The organization chooses the most important customer groups for the Abell model. In this case for the business to business market. The organization can expand its customer group by adding garden centers and catering to its portfolio.
The customer groups naturally have needs. In the garden center market it is mainly about reliability, delivery and the professional knowledge of the range that the wholesaler sells. This organization does not yet have an aftersales service department . This is an opportunity for the company.
The wholesaler currently uses recycled materials and keeps the flow of goods as sustainable as possible. However, it has been concluded from market research that new materials can be used to make the product more unique.
What can I get out of it?
With the abell model you have a clear picture of determining the growth markets. In the first instance, the company can define its activities. Furthermore, Abell’s model also offers the possibility to broaden the factors on the axes, to add one or more axes to its activities.