Market Driven Strategy

MARKET DRIVEN STRATEGY

Consumers  demand of superior value form goods and services

External influences  increased

Market- driven strategies  business strategy decisions should start with understanding of the market, consumers and competitors

Enhancement in consumer value  superior shareholder value

Logic of market-driven strategy  Market and consumers that form the market should be the starting point in business strategy formulation

Provides companywide perspective  better integration of activities

and process that impact consumer value.  needs to be linked to the organization’s unique competitive strategy.

Characteristics: Advantage  understand the market and how is to change in the future.  foundation of market-driven strategies.  requires information about consumers, competitors and markets  deciding how to deliver superior consumer value  and taking actions .

1. Becoming market oriented

2. Determining distinctive capabilities

3. Matching consumer value requirements to capabilities

4. Achieving superior performance

Becoming market oriented  is a business perspective that makes the consumer the focal point of a company’s operations.  culture is committed to creation of superior customer value.  Requires ethical behavior within the organization.  involvement and support of the entire workforce  monitor rapidly changing consumers needs and wants.

• Characteristics: continuous gathering information about consumers, competitors and market  views information form a total business perspective  decides how to deliver superior customer value and takes actions to provide it.  requires participation of everybody in the organization and:

1. Customer focus: market orientation philosophy, a process of delivering customer value. / Market concept  decides which needs to meet and involves the entire organization in the process of satisfy customers

2. Competitor intelligence  understanding the competition as well as the customer  understand competitors weaknesses and strengths.

3. Cross- functional coordination  Market- oriented is effective when all business functions are working together to provide superior customers value.

4. Performance implications  market oriented display favorable organizational performance.

• Becoming a market-oriented organization  the objective is to deliver superior