The TOM Challenge: TOM Winners and Losers Assignment

December 09, 2015

Read The Full Prompt

The basic thesis of the TOM course is that company performance is driven by the alignment between the company’s business model and operating model. As defined in the “Introduction to the RC TOM Course” note, a business model is defined as how the firm creates and captures value, and an operating model refers to the processes that transform a firm’s assets (e.g., capital, labor, intellectual property, equipment, etc.) into valuable actions.

Please identify one organization in the global economy that you think is highly effective (or one that is highly ineffective) at driving alignment between its operating and business models

  1. Did you choose the company as an example of effectiveness or ineffectiveness? Why?
  2. Describe the company’s business and operating models. What is interesting about them?
  3. Do the models align and support each other?  How?  What specific features of the operating model are designed to create and sustain competitive advantage?  What features of the business model leverage unique capabilities of its operating model?  What are the implications for performance?

Submitted (929)

Vipshop: Bringing discounted retail e-commerce to China
Kbouks
Last modified on December 8, 2015 at 8:47 pm
Vipshop brings the discount retail model to china through an e-commerce platform.
Jet.Com – Running out of Gas?
CMatthews
Posted on December 9, 2015 at 7:08 pm
With nearly $750 million in venture funding this year, Jet is trying to disrupt Amazon, but appears to be running into an unstoppable force.
Chipotle and the Fast Casual Revolution
David Hess
Posted on December 9, 2015 at 9:23 pm
How a Mexican restaurant chain is taking on the entire fast food industry...
Wegmans: The Best of Four Worlds
Kim Teti
Posted on December 5, 2015 at 1:19 pm
Wegmans has earned a loyal customer base through its four-pronged business model that combines the best attributes of its competitors into a unique shopping experience. But, how has Wegmans been able to deliver this all-around winning experience when other grocers [...]
Reality TV to Ghalichi Glam – Lilly Ghalichi’s lifestyle conglomerate
Ilene R
Last modified on March 3, 2016 at 2:31 pm
Read on to discover how tight integration between social media and advertising helps Ghalichi Glam grow its lifestyle and fast-fashion businesses.
SLC Agricola: The way to run a farm in the 21st century
Techie
Posted on December 9, 2015 at 10:51 pm
SLC Agricola is poised to become a key player in the agricultural world thanks to its leading farming position in Brazil and premier operational efficiency
Blue Apron: Bringing economical exotic meal experiences to door-step
changeme_15
Posted on December 9, 2015 at 3:56 pm
How an HBS graduate is disrupting the food industry by building an innovative ~$2Bn valued meal kit business in under 4 years!
Walmex: Adaptability of the Walmart business model
GabyR
Last modified on December 10, 2015 at 12:24 am
Have you ever been to a “high-end Walmart” that is known for luxury and quality products? Can Walmart compete on something other than price? More so, can the Walmart business and operating model be adapted for different types of stores? [...]
Toronto Transit Commission: Clearly not the “Best Deal On Wheels”
VA
Last modified on December 9, 2015 at 11:28 pm
As the 3rd most heavily used North American transit system with an operating budget over $1.5B, it's shocking that an organization of this scale is able to get away with an ineffective operating model and continue to squander taxpayer money.
Royal Mail Plc – Heavy Lies the Crown
Daniel Danev
Posted on December 9, 2015 at 6:06 pm
Tracing its roots back to 1516, Royal Mail (RM) is the incumbent postal service provider in the UK, offering letter and parcel delivery and international logistics services. After almost 500 years of public ownership, the British Government IPO-ed the business [...]
Facebook is Not Google…and it should not try to be
Bansi
Posted on December 8, 2015 at 7:38 pm
Facebook has a great operating model. But instead of mimicking the business models of their competitors and comparable companies, they should try to monetize in a way more aligned with their greatest asset: highly engaged users.
Careem – Why is a local startup winning the competition with a global giant like Uber?
Deeps
Last modified on December 13, 2015 at 11:43 am
Careem - Why is it winning the competition in the Middle East with a global giant like Uber?
Ocean Optics: Miniaturized Spectrometers – A tiny solution looking for big problems
Hao Wu
Last modified on December 6, 2015 at 5:19 pm
Ocean Optics make spectrometry measurement easier and more accessible than ever. Given a myriad of possible applications, how can they find the right customers and the right problems to solve?
Farfetch: Global Fashion Online & In-Store
Evelyn
Last modified on December 6, 2015 at 2:30 pm
A marketplace that integrates the online and in-store shopping experience and whose operating model could teach its peers in traditional ecommerce a thing or two.
Spotify and the Digitization of Music
Trainwreck
Posted on December 3, 2015 at 8:50 am
How Spotify became invaluable to the music industry
Jet Blue: Bringing Humanity Back to Air Travel
Rebecca
Last modified on December 7, 2015 at 7:16 am
JetBlue is a full service, low cost airline that serves as a great example of a company whose business model and operating model exist in harmony. At its’ inception, JetBlue’s hybrid full service, low cost business model shocked the traditional [...]
New ‘Coupang’ in food delivery industry?
Seunghyun
Last modified on December 13, 2015 at 4:45 pm
A food delivery startup expanding its user base by focusing on its core competency and vertical integration
Finding the Next Uber
Steven Shin
Last modified on December 4, 2015 at 5:53 pm
Everyone wants to find the next Uber and be the company that can generate annual revenues of ~$2B in just six years. Here’s how Uber has become the envy of other companies.
REI: Equipped to Endure
Doug
Last modified on December 8, 2015 at 7:48 pm
REI sells outdoor equipment in a manner that creates consumer trust. With a business and operating model that align like peanut butter and jelly, they are a successful company with a bright future.
Story of Innovation: How a local Rice Wine became a gift to President Obama?
SR
Last modified on December 9, 2015 at 3:27 pm
This is a story of innovation of the operating model for Japanese Rice Wine ("SAKE"). This is given to President Obama, from Japan's Prime Minister.
In-N-Out – The Freshest, Friendliest Fast Food
Leigha Kemmett
Last modified on December 5, 2015 at 5:48 pm
In-N-Out Burger stands apart from its fast food competitors by shirking freezers and encouraging smiles
Lululemon: From Niche Market Pioneer to Apparel Ubiquity
BM
Posted on December 9, 2015 at 9:46 pm
How Lululemon created an activewear empire from a niche product with broad appeal
The MBTA: A Case Study in the (Mis)Alignment of Operating Models for Public Services
aoconnor
Posted on December 9, 2015 at 9:52 pm
Overview of the MBTA's current fiscal and operational challenges, to serve as a case study that illustrates the challenges in aligning operational and business models for public services
Amazon: ‘The Everything Store’ – Driving Long-Tale Strategy with Superior Supply-Chain Management
Itamar Zur
Last modified on December 10, 2015 at 9:18 pm
By developing superior supply-chain management, building strong relationships with vendors and distributors, and providing a seamless online experience for shoppers, Amazon has grown to be the world’s biggest online retailer.
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