Market-Driven Strategy and Its Characteristics

Explain the market-driven strategy and its characteristics

The market-driven strategy is actually the business planning and all the business strategy decisions should be started with a clear perceiving of markets, customers, and competitors. The market and the customers that form the market should be the starting point in shaping the business strategy. The main target of this strategy is to provide the maximum value or advantages to the customers.

Become Market-oriented

Market-oriented is a business point of view that put the customers as the focal point of an organization's complete operation. This idea holds a similar thought as the "Market concept.” In any case, for a business to get market-oriented, it includes the utilization of superior’s skills of the organization to understand and satisfy them. A market-oriented business always gathers all information related to its customers, markets, and competitors. It analyzes the whole business for the perspective of the superior value of its customers. They take actions to provide superior value to their customers.  

Customers focus

The customer focuses mean understanding the basic needs, wants, and demand of the customers and delivered them responses products as per their requirements. Marketed oriented businesses always find the preferences and requirements of customers. Ultimately, their aim is to satisfy them.

For Example, Dell Company contacts with buyers directly and get information. It is a very important source of information to get action for the superior value of their customers.

Competitor intelligence

Market-oriented business always recognizes how much important is to understand the competitors and customers. Who fails to understand their competitors and their customers can create a big threat for a company. 

For Example; The Western Union has not defined competition as telecommunications, but it has been about telecommunications services, and lastly, but not least, old companies are hiding in the technology of factories. If Western Union focuses on the market, its administration can better understand current developments, recognize the threat of competition, and develop strategies to counter it.

Cross-Functional Coordination

Market-oriented organizations are compelling in getting all business capacities to cooperate to give superior value to customers. These businesses are fruitful in expelling the barriers between business marketing functions with manufacturing and finance. 

Performance Implications

Market-oriented companies start strategic analyses with an entering perspective available and the competition. Besides, a growing collection of research discoveries points to a solid connection between market-oriented and superior value.

Distinctive Capabilities

Identifying distinctive capabilities of an organization is a significant segment of a market-driven strategy. Abilities can be characterized as complicated packs of aptitudes and gathered information, practiced through hierarchical procedures that empower firms to facilitate exercises and utilize their assets.

For Example;new product development process of Zara, which explain the distinctive capabilities of their retailers. Process of new product development applies skills of the design team and their benefits of the team’s knowledge. Strong brand image is an asset of the Zara, which helps in launching a new product in the market.