Design Organisation


Operating models
Category-based

 

First tier of separation is by category. P&L measured by category.


Category Based


Advantages

Provides focus on:
  • the product range regardless of channel
  • Develop category specific knowledge and capabilities
  • Develop intimate relationships with suppliers
  • Integrate customer experience across multiple channels
  • Clear accountability for P&L
 

Disadvantages

  • Way of operating could be biased by predominant behaviours (e.g. stores)
  • Generalist skill set – might not respond as quickly to new trends/technologies
  • Higher operating costs because of duplication of capabilities
  • Creates category silos – best practice & innovation not shared as effectively
  • Can result in a different experience for the customer by category
 


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