Tuesday, March 29, 2016

Market-Driven Strategy

Although some industries are more stable than others, the organizations that flourish in the long-run are those who engage in continual strategic renewal.

Most businesses are internally driven, which means their strategy is driven by what they have done in the past.  The weakness is not anticipating changes in the marketplace and therefore failing to be adaptive and innovative.  Organizations that are customer-driven try to develop a strategy by "being close" and "listening" to the customer.  The consequence of trying to be too customer-driven is trying to be "all things to all people." 

Organizations that are market-driven make conscious choices about which markets they will serve and how they will add value to their customers.  They seek to differentiate themselves from their competitors by identifying the specific benefits they will or will not provide, and they organize around the delivery of these benefits.

A market-driven strategy is not the same as asking customers for their input and feedback.  It is based on making decisions about how the organization wants to compete.

We believe that it is through a market-driven strategy that you will best compete in the present and plan for your future.

Until next time...

Sheryl Tuchman, SPHR, SHRM-SCP

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