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) Building a Chinese E-Commerce Leader
Last modified on December 9, 2015 at 10:32 pm
How did China’s #1 direct-sales e-commerce company and e-commerce challenger achieve its leading position? By aligning its business model with its operating model, of course!
Le Tote – “Netflix for clothing”
Posted on December 9, 2015 at 8:41 pm
  Overview Le Tote is a subscription-based fashion rental startup for clothing and accessories. It was established in 2012 by Rakesh Tondon and Brett Northart and raised total #27.5 million worth of funding in three rounds as of November 2015. [...]
The Force is with Mickey Mouse
Simeon Bochev
Last modified on December 6, 2015 at 9:53 pm
The marriage between Disney’s “Business Model Canvas” and its five core operating assets should allay fans’ concerns that Star Wars has fallen to the Dark Side.
Wounded Warrior Project: Not quite the hero we expect?
John D. Basilone
Posted on December 7, 2015 at 6:30 pm
Wounded Warrior Project - charitable organization or successful marketing firm?
Spinning and Winning: How Peloton is revolutionizing fitness, technology, and everything in between
Last modified on December 13, 2015 at 1:19 pm
From Fitbit to P90X, SoulCycle to Equinox, gone are the days when the average fitness addict is satisfied with a 3-mile jog on the treadmill. Enter Peloton.
Beacon Air: Making Private Jets Accessible for Everyone
Posted on December 9, 2015 at 9:37 pm
Despite what the name and marketing may suggest, Beacon is not an airline. Rather, it is a broker that aims to transform regional travel by offering subscribers unlimited access to mid-size executive private flight and it does it by arranging [...]
Everlane: Simple Fashion, Radical Business Model
Posted on December 9, 2015 at 10:17 pm
Radical Transparency - no, not Bridgewater, but fashion retail.
Bombardier’s Rough Landing: Falling from the Blue Blue Sky
Posted on December 9, 2015 at 8:10 pm
Bombardier's aim for the stars foiled by its inability to set up equally ambitious operating standards
Realizing Growth Through the Potential of e-Commerce
Posted on December 9, 2015 at 7:09 am
A vertically integrated retail store in the e-commerce era, Bonobos has successfully created a product line and a service experience that their customers value.
Bolt Bus – Disrupting the Urban Transit Market
Last modified on November 30, 2015 at 8:36 pm
Bolt for a Buck.  This simple concept has created value—an estimated $85MM* in annual revenues for Peter Pan and Greyhound who partnered to create BoltBus in 2007—in a formerly stagnant bus transportation industry.1 BoltBus’ business model is simple: to transport [...]
SolarCity: Harnessing the Power of the Sun to Drive Customer Value
Last modified on December 6, 2015 at 4:15 pm
SolarCity's business and operating models come together to drive down the cost of clean energy
Building an Innovation Engine in Healthcare: Hospital for Special Surgery
Posted on December 9, 2015 at 11:27 pm
How a hospital is distinguishing itself by launching an innovation center and employing design thinking approach
Danaher – A Modern Marvel of Continuous Improvement
Andrew Banovic
Last modified on December 8, 2015 at 6:04 am
Danaher - Continuing to turn seemingly lumps of coal into diamonds!
How Empire Created Its Empire
Last modified on December 7, 2015 at 11:43 pm
FOX's Empire is changing what it means to be a business in entertainment
Tesla Motors: Luxuriously Green
Posted on December 8, 2015 at 4:18 pm
Tesla redefined innovation in the slow moving automotive industry with its luxury electric cars and unique operational model.
Akindo Sushiro: Tasty Sushi for All at $1 per plate
Posted on December 9, 2015 at 10:33 pm
“Tasty sushi for all. Tasty sushi for the heart” Sushiro changed sushi from high-end meal to more daily meal
Winning with Lolly Wolly Doodle: Saving “Made in America” by being the “The Dell of Apparel”
Posted on December 9, 2015 at 7:57 am
Lolly Wolly Doodle: Being Just-In-Time with customizable fashion.
#Twitter: A story of #failure
Last modified on November 29, 2015 at 11:31 am
Twitter: A broken operating model with a clueless leadership team #DoomedToFail
Under Armour
Eight Ball
Posted on December 9, 2015 at 6:33 pm
How did Under Armour enter the sportswear market that was dominated by Nike and Adidas and become a legitimate competitor?
Last modified on December 8, 2015 at 10:56 pm
LendingClub uses technology that banks don't have, to offer what they can't.
What’s in Your Luggage?
Posted on December 9, 2015 at 11:10 pm
What your perfect travel companion has to says about design innovation...
Harvest Power
Last modified on December 9, 2015 at 4:08 pm
Farm to fork to fuel to farm: putting organic waste resources to work
Camden City School District
Last modified on December 9, 2015 at 9:52 pm
(still) waiting for Superman in New Jersey's toughest city
VALEANT: Valiant Vendor or Voracious Villain?
Last modified on December 9, 2015 at 9:57 pm
An analysis of a controversial pharmaceutical company’s business and operating model