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)

Xiabu Xiabu – Unique Hot Pot Chain
Qing Chang
Last modified on December 9, 2015 at 11:30 pm
Ranked 2nd in the fast casual restaurant industry in China and capturing 52% market share within the fast casual hot pot segment, Xiabu Xiabu (XBXB) revamped the entire concept of traditional hot pot cuisine since 1998. It differentiates itself from [...]
Amazon: Taking over the (Retail) World
Amy Shi
Last modified on December 8, 2015 at 1:23 am
Amazon is the undisputed leader in the competitive e-commerce space by providing customers with a huge selection, low prices and unparalleled convenience. It is able to do this through aligning its processes, investments and culture to its customer value proposition.
BorrowLenses.com – Smooth Bokeh starting at $50
Dallin Rosdahl
Last modified on December 9, 2015 at 4:08 pm
One company that disrupted the photography industry one rented lens at a time.
New Belgium: Brewing Success
Frank Underwood
Last modified on December 3, 2015 at 5:32 pm
Employee ownership and a strong sense of purpose have fueled New Belgium's rise to the top of the craft beer pyramid, creating highly motivated employees and loyal customers.
Professional Food Critics Beware: Dinner Lab Gives Restaurant Review Power to the Masses
Christy
Last modified on December 7, 2015 at 7:01 am
Dinner Lab is shaking up the culinary industry, offering unique and personalized food experiences to the proliferating foodie population.
Priceline: Outperforming the Online Travel Agency Business Globally
MGrass
Last modified on December 6, 2015 at 3:30 pm
The Priceline Group has consistently outperformed it's competitors in the Online Travel Agency business. So what is Priceline doing well?
Trader Joe’s: Food for Thought
Pantry Ninja
Posted on December 9, 2015 at 9:33 pm
Delivering innovative, high-quality groceries at affordable price points
ENGRO Foods: Bringing information technology to milk farmers in Pakistan
Onaizah P
Posted on December 9, 2015 at 10:38 pm
How a local business giant reformed the lives of milk farmers in Pakistan
Pemex: Mexico’s state oil company operational inefficiencies
MarcelaLopezMacias
Last modified on December 1, 2015 at 8:06 pm
Pemex’s operational inefficiencies have become more evident as the company prepares to face private competition in 2016 for the first time since 1938
The NFL Gravy Train: Too popular to derail? The Rewards and Risks of Power Centralization
EE
Posted on December 9, 2015 at 10:12 pm
A look at the operations of the NFL, a winning model with increasing risks of a dramatic fall from grace
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.
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.
JetBlue Mint: Disrupting the Equilibrium for a Low Cost Carrier
Sarah Lux
Last modified on December 9, 2015 at 4:41 pm
JetBlue is the leisure traveler’s airline, offering leather seats and DirectTV at a discount to legacy airlines. But how will their customers react to an expensive premium cabin? Is JetBlue still a low cost carrier?
Phillips-Medisize: A Leader in Outsourced Design, Development, and Manufacturing Services
TK
Last modified on December 14, 2015 at 11:50 pm
Long-term investments lead to long-term growth
Quanergy: Look Ma! No Hands
Rob Jones
Last modified on December 7, 2015 at 11:34 pm
How a Silicon Valley start-up is helping accelerate the adaptation of driverless cars.
REI – the Outdoor Customer’s Company
lkrone
Posted on December 9, 2015 at 7:42 pm
“We inspire, educate, and outfit for a lifetime of adventure and stewardship” – REI Employee
TransDigm: Nothing Plane About It
jp10010
Posted on December 8, 2015 at 7:08 pm
TransDigm is not just another manufacturer - it has carved out a unique niche based on the combination of its operating and business models
From Pinkberry to Crackberry: A success story
Ranime
Last modified on December 9, 2015 at 8:32 pm
Food blogger Rosie O'Neill: "I would get Pinkberry IV'ed into my veins if I could" Leslie Grossman, actress: "The first time you try it, you're like -- 'Eh,' and then you're like, 'Did I eat that whole thing?' And then [...]
Tinder’s Business and Operating Models #ItsAMatch!
Justin Smith
Posted on December 9, 2015 at 11:28 pm
Tinder's business model and operating model both swiped right, creating a power couple that drives high level performance
TriMark: The Foodservice Equipment Distribution Giant
DK
Last modified on December 9, 2015 at 11:31 pm
In a growing, but fragment foodservice equipment distribution space, TriMark has managed to become the largest consolidator by providing better value to customers through a superior operating model vs. peers.
Emirates Airlines: the International carrier
Bass
Posted on December 9, 2015 at 11:23 pm
Emirates Airlines: Enabling Customer Service Excellence through Cost-efficient Operations
Softbank Robotics – World’s First Consumer Humanoid Robot “Pepper”
Satoshi
Last modified on December 5, 2015 at 7:15 pm
  Softbank Robotics introducing Pepper “Sold Out”. 10:00 AM on June 20th, 2015, Softbank Robotics released its first wireless humanoid robot on earth in its website – and at 10:01 AM, registration closed. 1,000 robots were sold out in less [...]
Ferrari: Innovation on the Road and Track
rdalal
Last modified on December 4, 2015 at 5:13 pm
Racing legacy, engineering talent and scarcity have fueled Ferrari’s winning history and created an iconic automotive brand
Winner: Trader Joe’s – Providing Low Cost High Quality Products
HGallin
Posted on December 9, 2015 at 9:42 pm
How a low cost grocer with eclectic products gained a cult following.
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