In this article Stanley F. Slater and John C. Narver discuss market orientation strategies and the difference between customer-led and market-oriented. Both customer orientations concentrate on their customers but customer-led focuses directly on what customers ask for and filling those needs, and market-oriented concentrates on latent needs and understands different customers give them different information. Competitive advantage is described as providing a skill or resource that is difficult to imitate. Overall it was shown that both strategies create competitive advantage in different scenarios. Market-led proves useful in short term stable markets and market-oriented in long term dynamic markets.
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by in Strategic Management Journal on December 21, 1998
by in The McKinsey Quarterly on November 02, 2000
Philipp M. Nattermann explains why strategic herding, meaning adopting a competitors successful business plan, may be a good operational tool, but a bad benchmark. When two companies are competing in the same market both of the companies margins decline in the long run. This happens because when more and more companies enter into the same market the amount of profit is split between all of the competing businesses eventually making the market unprofitable. Philipp M. Natermann discusses other possible business plans that may be a better option.
