Scribd
Upload
16 views3 pages

Market Driven Strategy

A market-driven strategy focuses on understanding and meeting customer needs to deliver maximum value, integrating company-wide efforts to enhance customer satisfaction and loyalty. It requires a market-oriented culture committed to superior customer value, monitoring changing customer preferences, and leveraging distinctive capabilities for competitive advantage. Corporate strategy outlines long-term goals and objectives, including vision, mission, resource allocation, growth strategies, competitive strategy, and risk management.

Uploaded by

Mahbub Hasan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
16 views3 pages

Market Driven Strategy

A market-driven strategy focuses on understanding and meeting customer needs to deliver maximum value, integrating company-wide efforts to enhance customer satisfaction and loyalty. It requires a market-oriented culture committed to superior customer value, monitoring changing customer preferences, and leveraging distinctive capabilities for competitive advantage. Corporate strategy outlines long-term goals and objectives, including vision, mission, resource allocation, growth strategies, competitive strategy, and risk management.

Uploaded by

Mahbub Hasan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Market Driven Strategy

The customer that form the market should be the starting point in business
strategy. A market-driven strategy is a long-term business approach focused on
understanding and meeting customer needs to deliver maximum value. It
emphasizes a company-wide perspective that integrates various activities and
processes aimed at enhancing customer satisfaction and loyalty. A market driven
strategy mandates effective integration of efforts that impact customer value,
ensuring that the company’s capabilities align with market demands.
Examples:
 Marriott Corporation: Marriott tailors its hotels to the needs of various business
traveler segments by analyzing customer preferences and competitor offerings,
boosting satisfaction and loyalty.
 IKEA: IKEA revolutionized furniture retail by offering stylish, affordable products
with a self-service model, capturing market share through customer-centric
innovation.
 Procter & Gamble (P&G): P&G uses market research to create products that
meet specific customer needs, ensuring competitiveness through market
segmentation.
 Amazon: Amazon leverages data analytics to personalize shopping, optimize
logistics, and expand offerings, consistently enhancing customer satisfaction.

Becoming market Oriented


A business is market oriented when its culture is systematically and entirely
committed to the creation of superior customer value. Achieving a market
orientation involves the use of superior organizational skills in understanding and
satisfying customers. Becoming market oriented requires the support of the entire
workforce. The organization must monitor rapidly changing customer need and
wants, determine the impact of these changes on customer behavior, increase the
rate of product/service innovation and implementing strategies that build the
organization’s competitive advantage.
Example:
IKEA: IKEA exemplifies market orientation by constantly adapting its offerings to
meet consumer preferences for stylish, space-efficient furniture. The company not
only designs products based on customer feedback but also addresses concerns
about assembly by providing clear instructions and optional assembly services
PepsiCo: PepsiCo invests heavily in market research to identify emerging consumer
tastes and health trends. In response to growing health consciousness, the
company has expanded its product line to include healthier options like Tropicana
and Quaker Oats, demonstrating its commitment to aligning with consumer
preferences

Customer Focus
It refers to the prioritization of understanding and meeting the needs, preferences
and expectations of customer as the central tenet of business operations. customer
focus within a market-driven strategy is about placing the customer at the heart of
business decisions, ensuring that all organizational efforts are aimed at delivering
maximum value and satisfaction.
Examples:
Zara: The fashion retailer Zara exemplifies customer focus by using real-time sales
data and customer feedback to quickly adapt its inventory and design new products
that align with current trends, ensuring that what they offer resonates with
consumer desires.

Competitor Focus
Competitor focus in a market-driven strategy involves understanding and
responding to the actions, strengths, and weaknesses of competitors to gain a
competitive advantage. This aspect is essential for businesses aiming to
differentiate themselves in a crowded marketplace and to effectively meet
customer needs while outperforming rivals.
Example:
 Apple Inc.: Apple maintains a strong competitor focus by consistently
monitoring competitors like Samsung and Google. This awareness allows
Apple to innovate its products (e.g., iPhones) with features that not only meet
customer expectations but also outshine competing offerings.

Distinctive Capabilities
Capabilities are complex bundles of skills and accumulated knowledge, exercised
through organizational processes that enables firms to coordinate activities and
make use of their assets. Distinctive capabilities in a market-driven strategy refer to
the unique strengths and competencies that an organization possesses, which
enable it to deliver superior customer value and maintain a competitive advantage.
These capabilities are critical for effectively responding to market demands and
differentiating the organization from its competitors.
Example:
ZARA: Zara's distinctive capability lies in its agile new-product development
process, which integrates the skills of its design team with accumulated knowledge
about fashion trends. The company's ability to coordinate activities across various
business functions—like design, manufacturing, and distribution—enables it to
respond rapidly to market demands while maintaining a strong brand image.
Corporate strategy
Corporate strategy is a comprehensive plan that outlines how an organization will
achieve its long-term goals and objectives while navigating the complexities of the
business environment. It serves as a high-level framework guiding decision-making,
resource allocation, and the overall direction of the company.
Key Components of Corporate Strategy
1. Vision and Mission:
 Vision: An aspirational description of what the organization aims to
achieve in the future, guiding its strategic direction.
 Mission: Defines the organization's purpose and primary objectives,
reflecting core values and beliefs.
2. Strategic Objectives: Specific, measurable goals that translate the vision
and mission into actionable targets, typically covering financial performance,
market expansion, and operational efficiency.
3. Resource Allocation: Strategic distribution of financial, human, and
technological resources to support business objectives effectively.
4. Growth Strategies: Plans for expanding market presence through various
means such as market penetration, product development, diversification, or
entering new markets.
5. Competitive Strategy: The approach to achieving a competitive advantage,
such as cost leadership or differentiation strategies.
6. Risk Management: Identifying potential risks and developing strategies to
mitigate them, ensuring sustainability and stability.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy