The 7 Domains Model is a simplified framework that company owners may use to determine whether their concept has commercial potential. The approach breaks down your concept into seven categories (domains) for further examination. The first four focus on analyzing the market and industry at both the micro and macro levels, while the latter three are internal to the business. The proposed new product or endeavor is split into seven "domains" in Mullin's Seven Domains Model; four domains examine external factors (micro) and internal factors (macro) in the market and industry, respectively, while the other three domains concentrate on challenges inside the firm itself. A better picture of the business's or product's viability will emerge as one starts to evaluate each of the categories and ask important questions. (Paxie, n.d.) When developing the business strategy, you'll be able to solve any problems you find throughout this process. Here's a rundown of each of the seven categories:

 

The first market domain examines the market's attractiveness at the macro level. The number of clients, total sales, and a total number of sold products are all considered. The recent expansion is analyzed, as is the likelihood that this expansion will continue. The primary goal of this study is to determine whether the current market is stable enough to support the introduction of new items or if it is in decline.

Market Domain/Micro Level: Sector Market Benefits and Attractiveness: This domain examines the market segment and asks questions like, "Which segment is most likely to benefit from the new product? How is the new product different and better than the ones currently offered? Is this segment currently growing?" To find the answers to such queries, it is necessary to collect a variety of data, including statistics on past sales and information on potential new clients.

The attractiveness of the Sector as a Domain Studies the macro-level appeal of getting into the industry. Consider inquiring about the level of competition and the challenge of entering the business. Consider the level of rivalry that exists and whether there is any stealing of ideas or tactics going on. Finally, it is important to look at the bargaining position of buyers and suppliers within the sector to see how it can affect the introduction of the proposed product or service. (Cuofano, 2022 )

Finally, the micro-level industrial domain of Sustainable Advantage should be considered. One must assess the ease with which the competitors may replicate the product or service under consideration and how this risk might be mitigated. Consider the patents, technical procedures, and financial support that may come from each option.

Team Goals, Ambitions, and Tolerance for Risk: At this moment, the focus shifts inward, to the founding team of the company itself. It's crucial to assess the amount of dedication shown by both top management and individual team members in the face of this new possibility. It's also important to think about whether the team is committed to the success of the project and can stomach the degree of risk that comes with it.

The domain of "Team's ability to execute on Critical Success Factors" considers the Critical Success Factors for the new product or service and evaluates whether the existing internal team can deliver on them. At this juncture, it's important to know who on the internal team is accountable for making choices that may have a major impact on the company's success or failure. Determine what jobs can be filled to bridge any gaps in skill or decision-making capacity.

This last area examines connections throughout the whole Value Chain, from suppliers to investors to consumers to distributors to competitors. The best way to avoid or at least be ready for future disputes is to investigate these ties and determine how they could aid or hinder the company under consideration. (Walker, 2013)

When applied to a new business opportunity, the Seven Domains Model may provide a hypothesis on whether it is worthwhile to pursue. Factors that seem to be substantial roadblocks may really be manageable in advance if they have been uncovered. After determining whether the new product or enterprise has widespread support, the next stage is to draft a detailed business plan for review by upper management and prospective funders.