Functionally-based Project-based Product-based Market-based Matrix-based Process-based Channel-based Category-based
Operating models
Category-based
First tier of separation is by category. P&L measured by category.
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