Market driven organization (1)

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Market driven organization (1)

  1. 1. Market Driven Organization
  2. 2. Market Orientation: Set of beliefs that puts customers’ interests firstSuperior skills of organization in Ability of organization to generate understanding and satisfying and use superior information customers about customers and competition Interfunctional co-ordination for the creation of superior customer value
  3. 3. Capabilities: Link between capabilities and strategy Combination of skills and learning exercised through Market driven organizational organizations superior in processes and ensure market sensing and superior co- customer linking ordination of functional activities Applying capabilities approach to design programs to enhance market orientation
  4. 4. Capabilities and Strategy: Capabilities: Using assets more advantageously Cannot be given a monetary value Embedded in organizational culture. Cannot be imitated Porter – Differentiate and make strategic investments, pricing strategies etc. Capabilities Approach: Best way to determine and improve firm-specific resources
  5. 5. Core competencies:Distinctive capabilities necessary to moveproducts and services through value chainThey must provide a significant contribution tocustomer valueImportance vs Performance trade-off• Customer not aware of processes
  6. 6. How to use capabilities? Orient outside-in and inside-out processes through spanning processes
  7. 7. Market Sensing as a DistinctiveCapability: Customer Orientation Competitor Orientation Interfunctional co- ordination
  8. 8. Customer Linking as a DistinctiveCapability:Particularly in B2BStarts with co-ordination of inside out and spanningcapabilitiesClose communication and joint problem solvingEg: Toyota and manufacturers, Walmart and P&G
  9. 9. Examples: Honda: Engine Walmart – Cross- Marriott Hotels Eye for Technology and Dealer docking Facility Detail (66 steps) Management • Difficulty in observing capabilities • Knowledge tacit and dispersed • Technical expertise and learning • Imitation difficult: Result of constant learning and difficult to observe over many functional areas

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