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)

Wikipedia: Here for now
Natalie H.
Posted on December 9, 2015 at 10:30 pm
Wikipedia is operated by the Wikimedia Foundation, a 501c-3 (non-profit) and is aimed at providing free, objective educational content to the public.
Coyote Logistics – Providing Innovative Solutions to an Age-old Industry
Luke Rundel
Last modified on December 9, 2015 at 9:08 pm
How did a trucking company with zero revenue grow into a $2 billion market leader in less than ten years?
Harley-Davidson: Being Bad Can Be So, So Good
Matt Simpson
Last modified on December 8, 2015 at 11:11 pm
Harley-Davidson doesn't sell you a bike, they sell you freedom.
In-Q-Tel: How to Keep Your Spies In the Know
DG
Last modified on December 9, 2015 at 11:23 pm
Even the CIA needs help with technology. In-Q-Tel is just the solution the spymasters of the world were looking for.
Kinder Morgan – The Mighty Middleman in Flux?
Art Pithayachariyakul
Last modified on December 9, 2015 at 10:38 pm
Kinder Morgan has long dominated the midstream business of transporting oil and gas products. The toll-road business model and command of a vast network of energy infrastructure combine to create a stable, highly effective midstream operator.
Tencent: Growth of a “King Penguin”
Henry Hou
Posted on December 8, 2015 at 7:52 pm
From ICQ to MSN messenger, IM giants had come and gone, even more been forgotten. Why did Tencent survived? And more importantly, why did it prospered?
NetJets – Pioneer in Private Business Travel
Jared Reyes
Last modified on December 7, 2015 at 5:47 pm
#yolo #timeismoney #1738 #aerospace #businessjet #netjets #marquisjet #privateairtravel
Making Memories with the American Girl Company
Pooja Venkatraman
Last modified on December 9, 2015 at 11:05 pm
The American Girl company is in the business of magic, memories, and new best friends.
Cinepolis Luxury Cinemas – “A first-class movie destination”
Robert Lam
Posted on December 7, 2015 at 11:55 pm
Cinepolis seeks to provide an upscale movie going experience by providing comfortable seating, fine dining options and lounge areas for customers to interact. For roughly $20 a ticket ($8-10 more than a typical theatre), customers can have a convenient and [...]
Athenahealth: Taking on the Giants and Disrupting the Health Care Space
Fioffreda
Posted on December 9, 2015 at 11:13 pm
Disrupting heath care via cloud-based provider services
Ally Bank: Taking Retail Banking Online
James Cassel
Posted on December 9, 2015 at 9:31 pm
Ally Bank - delivering value through high interest rates and superior customer experience, without brick-and-mortar branches.
Blue Apron: Fixing the Food Delivery Supply Chain
SRT
Posted on December 9, 2015 at 6:36 pm
Blue Apron leverages supply chain innovation to get fresh ingredients, great recipes delivered weekly to your home.
Sears – The collapse of a company from within
Spencer Reynolds
Posted on December 6, 2015 at 9:28 pm
How a misaligned operating model can cause the decline and possible collapse of a 100 year old company.
Stop The Press! The Financial Times Proves News Publications can be Profitable
Preeya
Last modified on December 9, 2015 at 9:59 pm
How data and digital technology helped the Financial Times grow revenue in a declining industry.
Dufry: Consolidating Profitably in Travel Retail
Jeff Berry
Last modified on December 12, 2015 at 3:03 pm
Dufry operates retail shops within airports. The business is effectively a high-end consumables business that enjoys monopolistic rights to retail certain categories within airports.
Sunrun – Solar as a Service
KunalRai
Last modified on December 8, 2015 at 9:20 pm
Sunrun is a full-service solar energy service provider that knows how to ease a first-time clean energy customer's pain and anxiety.
Vail Resorts: Delivering a Premier Mountain Resort Experience
Kavalerk
Posted on December 8, 2015 at 7:45 pm
Vail Resorts’ operating model helps it to deliver the Experience of a LifetimeTM
Iora Health: Improving Health While Cutting Costs
SPS
Last modified on December 9, 2015 at 6:19 pm
Mission and Business Model Iora is a for-profit primary care model that aims to create value by improving patient health while lowering overall cost to the patients’ employers. Their business model is to provide high quality and service-oriented primary care [...]
AMTRAK- When Political Absurdity Meets Government Inefficiency
Jack K
Last modified on December 9, 2015 at 4:58 pm
Amtrak is the government subsidized and sole National Passenger Railroad Operator in the United States.  Through outdated requirements and the inability to secure funding for long term investments, Amtrak has accumulated annual losses of greater than $1 Billion every year [...]
Etsy – An Artisanal Marketplace for Millions
Campbell
Last modified on December 5, 2015 at 5:56 pm
Etsy's website connects small-scale artisans and merchants to a consumer base of over 22.6 million active buyers and in doing so, supports the growth of creative, independent businesses all over the world.
Uber: A Winning Strategy
Ruby Tamberino
Posted on December 9, 2015 at 8:04 pm
Uber effectively aligns its business model with innovative operating practices to maximize profits and optimize the experience of both the driver and the passenger.
TaskRabbit: Your Retinue of Errand Runners
Thomas Kontchou
Last modified on December 9, 2015 at 10:22 pm
How TaskRabbit overhauled its matching system to better align its operational and business model
Flatiron Health: Finding the Cure for Cancer
Alice
Last modified on December 6, 2015 at 10:31 pm
Odds are you know someone who was diagnosed with cancer. Learn more about one start-up taking on this deadly disease. Flatiron Health is a healthcare IT company using data to find the cure for cancer.
Louis Vuitton: Luxury handbags coming off an assembly line?
Remi Bouvier d'Yvoire
Last modified on December 6, 2015 at 3:43 am
Louis Vuitton revolutionized its operating model to better serve its clients and enhance its luxury image.