Matt McKenna

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Bain & Company: What we can learn about operating models through a services firm
Matt McKenna
Last modified on December 6, 2015 at 1:50 pm
We tend to think about operating models as they relate to fixed asset or repeatable process businesses. But operating models are as important if not more with services firms, where your competitive advantage may walk out the door every day. [...]

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On December 12, 2015, Matt McKenna commented on TriMark: The Foodservice Equipment Distribution Giant :

I’m curious how Trimark is shifting its operating model to align more with a business model in pursuit of consumables sales? These are more recurring in nature and therefore more attractive to them long term. Further, Trimark is competitively advantaged due to its scale relative to smaller parts and equipment distributors but not necessarily vis-a-viy food service providers. It will be interesting to see how Trimark continues to differentiate themselves vs. this group over the long term as the two worlds converge over time.

On December 12, 2015, Matt McKenna commented on Bonobos: a modern way to shop :

To my best understanding I don’t think Bonobos makes money. I believe they lose a lot of money on returns and the fact that guys don’t purchase at the same frequency as women. What’s more their guide shops while unique have been debatable in their ability to increase the velocity of purchase. As such bonobos has taken some drastic moves recently including launching a women’s line. All this is to say I wonder how we should define successful operating and business models? This model was innovative but the value it is adding may not be enough to a given consumer, or may not appeal to a wide enough base of consumers, to make it sustainable. So is this success?

On December 12, 2015, Matt McKenna commented on Trader Joe’s: Food for Thought :

This is very interesting, thank you. I think for me their basis of differentiation primarily stems from product. I’m curious how they can continue to come up with new product ideas and innovations more effectively than competitors. This is really what gets people in the door and allows them to obtain higher margins. Do they own product development or is it effectively outsourced to vendors? What are their test procedures? What warrants full roll-out of a product, etc. They seem to have a recipe here which is really working.