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)

JD.com: Building a Chinese E-Commerce Leader
MLJ
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!
Shinola: Operating Model as Brand Asset
mahylights
Last modified on December 8, 2015 at 6:20 pm
Made in Detroit helps Restore Shine to Shinola
EOG Resources: More Oil, Quicker Oil, Cheaper Oil
Jeff Judkins
Posted on December 9, 2015 at 10:38 pm
Oil Company Invests in Railroads and Sand Mines to Maximize ROCE
DaVita Healthcare Partners, Inc.
Jay Kumar
Posted on December 9, 2015 at 11:00 pm
By organizing their operating model to drive success of their business model, DaVita Healthcare Partners, Inc. has found a winning strategy for dialysis care.   Business Model DaVita provides dialysis services to patients with kidney failure. In the US, Davita [...]
Valeant Pharmaceuticals: Disruption or Destruction?
AdamRago
Last modified on December 4, 2015 at 3:58 pm
Valeant Pharmaceuticals has introduced a new operating model in R&D based on mergers and premium pricing. Is it sustainable?
Spirit Airlines: flying high on excessive fees and terrible customer service
lynncwang
Posted on December 9, 2015 at 4:29 pm
Spirit's ultra low cost operations and crappy customer service yield surprising financial dividends
RadioShack and its Operational Missteps
TOMChallenger
Posted on December 9, 2015 at 11:28 pm
RadioShack In February 2015, RadioShack, once a leading provider of consumer electronics, filed for bankruptcy after years of declining same-store sales and net losses. While numerous factors contributed to the precipitous decline in the company’s financial health, RadioShack’s poor financial [...]
Somebody Hates Amazon and Has Something Else to Offer
AF
Last modified on December 9, 2015 at 10:47 pm
From diapers to challenging the biggest retailer in the world
SunPower: A Bright Spot in Renewable Energy
MLG
Last modified on December 9, 2015 at 7:01 pm
A diversified, integrated approach to making solar energy both an affordable and profitable venture.
LinkedIn: Connecting Professionals to their Dream Jobs
VMF
Posted on December 8, 2015 at 10:44 pm
How to monetize network effects and create the largest professional network in the world.
IKEA’s business and operating models: a match made in heaven
Amine M.
Posted on December 9, 2015 at 9:14 pm
“For us, good design is the right combination of form, function, quality, sustainability and a low price. We call it ‘democratic design’, because we believe good home furnishing is for everyone. It’s why we’re constantly exploring smarter, thriftier ways to [...]
Nike’s Category Offense on the Offensive
Erlich Bachmann
Last modified on December 10, 2015 at 6:04 pm
Nike has found its fast. How category offense has brought Nike up to speed and past the competition.
Invisalign – When IP Isn’t Enough
Matt
Last modified on November 28, 2015 at 12:10 pm
Invisalign created an incredibly disruptive technology, but their IP wasn't enough to make this startup a success.
Baxalta: Building Trust with Patients
HBS17
Posted on December 8, 2015 at 9:30 pm
Baxalta is a leading biopharmaceutical company, delivering innovative products to patients around the world in difficult to treat therapeutic areas
NIKE: Designing the world’s best running shoe
dpinder
Posted on December 8, 2015 at 4:54 pm
Through designing a brand new manufacturing process, Nike has decreased cost, increased revenue and bolstered their overall brand image.
OYO Rooms: India’s largest budget hotel brand built in less than 3 years!
Anish Nahar
Last modified on December 6, 2015 at 3:29 pm
Learn how OYO is disrupting India's budget hotel industry and growing at breakneck speed!
Your doctor is on the line: Teladoc
ABCD
Posted on December 9, 2015 at 9:36 pm
How you can get a doctor on your smartphone in ten minutes or less.
Ibstock Brick – No longer a commodity?
Henrik
Posted on December 9, 2015 at 11:15 pm
A stone-age product experiencing venture-like growth driven by a unique supply/demand imbalance.
Manicube – The $15, 15 minute, in-office manicure/lifesaver
Monica
Last modified on December 9, 2015 at 11:44 pm
"It should be just as ok for a woman to get her nails done in the office as it is for a man to get a shoe shine." - Katerina Mountanos, co-founder
Standard Oil – A Company So Effective, Only the U.S. Government Could Compete with it
Schultzy
Posted on December 2, 2015 at 11:49 pm
In 1870, John D. Rockefeller created Standard Oil, a company that would go on to create the foundations of the modern oil & gas industry, force new business laws to be created, and become the first monopoly in the U.S.
Zappos: Delivering Happiness, Powered by Service
W. Zhang
Posted on December 9, 2015 at 1:42 am
A story of the unwavering focus on exceptional customer experience.. and the success that follows
Didi Kuaidi & China’s Car-Hailing Market
Tara Tai
Last modified on December 4, 2015 at 1:17 pm
Didi Kuaidi is an example of competitive advantage derived from effective alignment between business and operating models.
Continental Building Products: How low (cost) can you go?
Arthur Moreno (Cathcart)
Last modified on December 5, 2015 at 7:17 pm
Continental Building Products is a leading producer of wallboard in the United States. Through its unique operating model, CBP has been able to achieve industry leading operating margins and grow its market share, despite sub-scale operations relative to its peers.
SpaceX and the Operating Frontier
SineadOSullivan
Posted on December 3, 2015 at 3:20 pm
Redefining the cost of innovation breakthroughs through operational strategies at SpaceX
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