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)

Stantt: A Custom-Fitting Shirt With the Speed and Cost of Off-the-Rack
Peter Niehaus
Posted on December 9, 2015 at 6:15 pm
A high-tech clothing line that delivers perfectly-fitting casual and formal men’s shirts using just three measurements and at a fraction of the cost of custom
Warby Parker: “Why Should Should a Pair of Glasses Cost as Much as an iPhone?”
Kate Nihill
Posted on December 9, 2015 at 6:26 pm
Warby Parker provides stylish, socially-conscious eyewear at an affordable price point ($95) through their own e-commerce channel and brick-and-mortar stores.
Zenefits: Disrupting Human Resources Management
Student
Last modified on December 9, 2015 at 5:43 pm
Zenefits is one of the fastest growing software-as-a-service startups of all time, using a unique model to disrupt the payroll and business insurance industries.
GNC – Supplementation Gone Wrong
DoYouEvenLiftBro
Last modified on December 10, 2015 at 9:03 am
Specialty retailer's troubled performance this year symptomatic of an outdated and ineffective operating model
The Golden Ticket to Fine Dining – Alinea Shakes up a 250 Year Old Industry
Alex Fisher
Posted on December 9, 2015 at 11:24 pm
Alinea's innovative, dynamic ticketing reservation system and dedication to developing painstakingly creative tasting menus have optimized profits and created a truly differentiated experience in a highly competitive industry.
Amazon: Making History
Clive Bixby
Last modified on December 9, 2015 at 7:15 am
Amazon has been operating for two decades and is one of the world's largest retailers with its Fulfillment Centers at its backbone.
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.
Costco: Saving you Money
HeatherD
Last modified on December 9, 2015 at 12:13 am
This discount retail giant outperforms competitors through cost-cutting and operational efficiency.
Evisors.com – Land Your Dream Job
Dino
Posted on December 6, 2015 at 9:12 pm
What do you want to do in life and how will you get there? This is a question every person asks him- or herself at some point in their life. Unfortunately, it is far from easy to answer. The reasons [...]
WeWork: How can shared office space be valued at $10bn?
stuart
Last modified on December 9, 2015 at 8:21 pm
WeWork runs a simple office space arbitrage model. How can it be valued at $10bn? Is it sustainable?
GameStop: Learning from Blockbuster
Gonzalo Munoz
Last modified on December 9, 2015 at 12:31 am
GameStop has avoided Blockbusters fate by changing its Business and Operating models.
Ecolab: A Nexus of Innovation and High Quality Service
Adam Demuyakor
Last modified on December 9, 2015 at 10:56 pm
Overview With over $14Bn in Sales worldwide, (2014A) Ecolab is the global leader in water, hygiene and energy technologies and services. They are the largest dominant global provider of cleaning, sanitizing and water treatment solutions to 1MM businesses in over [...]
Red Hat: Bringing Open Source to Enterprise IT
Will Newell
Posted on December 9, 2015 at 9:08 pm
Red Hat is leveraging its open source expertise to grow in a rapidly changing Enterprise IT market.
GitHub: Development in a Networked Age
AC
Posted on December 9, 2015 at 8:35 pm
The Business Model   GitHub has revolutionized the software development process.  Not only has it created a category-defining tool for coders to address a severe pain-point, version control, but it also hosts a platform through which developers can leverage the [...]
FC Barcelona: Mes Que Un Club
Francisco
Posted on December 8, 2015 at 7:32 pm
This is how FC Barcelona leverages the assets it has to win it all
Bonobos: a modern way to shop
Claire
Posted on December 8, 2015 at 2:39 pm
With an emphasis on convenience and ease, Bonobos' operating model is perfectly designed to meet consumers' needs.
Blue Apron: Disrupting the Way People Cook and Eat.
CPerlman
Last modified on December 14, 2015 at 4:39 pm
Blue Apron was launched to disrupt the traditional way consumers shop, cook and eat meals at home. See how Blue Apron is also disrupting the traditional grocery store food model.
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.
How IndiGo Airlines Disrupted the Indian Skies
Prerit Jain
Posted on December 8, 2015 at 6:29 pm
#DisruptiveInnovation doesn't happen everyday. IndiGo airlines shows how market-facing strategy and operating choices come together to make it happen.
Fulfillment by Amazon: leveraging automation in warehouses
Xime
Last modified on December 6, 2015 at 7:54 pm
Amazon has been successful in developing a sophisticated, high-tech network of fulfillment centers, which they make accessible to third party sellers
The Business of Blowouts: Operational Efficiencies at DryBar
SR
Posted on December 8, 2015 at 11:43 pm
DryBar's ingenious branding, relentless commitment to customer experience and effective operations are transforming the beauty industry one blowout at a time.
Porcelain God: The Buc-ee’s Empire
Michael Streit
Last modified on December 9, 2015 at 6:04 pm
How a gas station developed a cult following by cleaning its bathrooms
Samsung semiconductor
Go Choi
Last modified on December 9, 2015 at 11:29 pm
Samsung is one of the companies that is highly effective in aligning its business strategy and operation model. Although Samsung has been perceived as a mobile phone manufacturer to most consumers, Samsung’s core business is in semiconductor. Since 1993, Samsung [...]
The New Republic: Effectively aligning business and operating models amidst critics
Jenna
Posted on December 8, 2015 at 3:57 pm
The shift in strategy at The New Republic has been a highly controversial topic in the media over the last twelve months. Chris Hughes, owner, and CEO, Guy Vidra, have set out to reinvent the 100 year old political journal [...]