Asset Orientation vs. Market Orientation
In a previous blog post, we discussed asset orientation vs. market orientation. A market-oriented business thinks and acts differently from an asset-oriented business. A market-oriented business starts with the target market and focuses on customer needs. It achieves profits through customer specification, via integrated value delivery.
Sustainable Profit Growth
The objective of market orientation is sustainable profit growth. The market is made up of the customer, the competitor, and the value-adding chain. You need to take all three into consideration in your analysis.
Customer
Understand the values and drivers of the decision-making customer, as well as those customers whose values match your value proposition.
Competitor
Understand the short-term strengths and weaknesses and long-term capabilities and strategies of key current and potential future competitors, including the technologies capable of satisfying the current (and well as future, expected) needs of the target market.
Value-Adding Chain
Understand the dynamics of the entire value chain, including political and economic constraints.
The above diagram is also the front end of Future Business History℠. Future Business History is part of the process designed to lead a company or business through developing a vision and an aggressive growth strategy.
