Amity Business School

Amity Business School

MBA Class of 2010, Semester II
Business Environment and Strategic
Analysis
Module-III (Business Definition)

Vivek Singh Tomar 1

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• A Business Definition is a clear statement of

the business the firm is engaged in or is
planning to enter.
What is our Business in precise way:
• “We are in the beauty enriching Business”
(Helen and Curtis)
• “ We are in the Business of Computing
Technology” (Intel)
• “We are Watch makers of the nation” (HMT)
• “We are in the transportation business”
(TELCO)
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• Business Definition Statements

• Define the ‘space’ that the business wants to
create for itself in competitive terrain
• Broadly specifies the opportunities that the
business may exploit within the space and the
threats it may encounter from rival firms in
course of time
• Must be defined in broad ways, keeping
changing customer tastes and aspirations in
mind
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Abell Model of Business definition

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Product Oriented V/S market Oriented

Company Product Definition Market Definition

Railways We run railways We are a people and

Goods mover
Oil Company We Sell Gasoline We supply energy
Film Producing We make movies We make entertainment
Company
Air conditioning We make air We provide climate
company conditioners control in the home
Publishing Company We produce and sell We distribute
books information
Copying Company We make copying We help improve office
equipments productivity
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• Questions to be examined before

defining nature and scope of operations
1) Who is the customer? Where is the
customer located, how to reach the
customer, how does the customer buy
etc.
2) What does the customer buy?
3) What does the customer consider value?