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How market leaders keep their edge
... The disciplines of operational excellence place a premium on improving the development and distribution of goods and services. This leads to goods or services that are dependable, competitively priced, and provided with little hassle or annoyance (Treacy & Wiersema, 1995). Product leadership worth concentrates on providing consumers with cutting-edge products and services that constantly improve the client's usage or implementation of the item, rendering competing goods outdated (Treacy & Wiersema, 1995). ...
... This leads to goods or services that are dependable, competitively priced, and provided with little hassle or annoyance (Treacy & Wiersema, 1995). Product leadership worth concentrates on providing consumers with cutting-edge products and services that constantly improve the client's usage or implementation of the item, rendering competing goods outdated (Treacy & Wiersema, 1995). Customer intimacy relies on consumer interaction to separate their target audiences accurately and then design their offers to closely fit the wants of those segments. ...
... Customer intimacy relies on consumer interaction to separate their target audiences accurately and then design their offers to closely fit the wants of those segments. Treacy and Wiersema (1995) stated that a company must be proficient in all three departments to be competitive, but an entity must excel in only one discipline to be a leading company. The disciplines approach is an outgrowth of Michael Porter's generic competitive edge tactics. ...
Purpose: The building of sustained competitive advantage is seen as a vital characteristic in ensuring competitiveness. To effectively operate in such a dynamic and competitive market, a corporation must implement a competitive strategy that optimizes the value of stakeholders. However, due to increased competition, the Kenyan banking system has had erratic performance in recent years. As a result, the major question is whether Kenyan commercial banks can use value discipline to help them maintain their competitiveness. That is, how can value discipline translates into a competitive advantage among Kenyan commercial banks? The study aims to investigate the function of value discipline in competitive advantage: a taxonomy of Kenyan commercial banks. Methodology: This was aided by a descriptive cross-sectional analysis methodology. The study comprised businesses rendering commercial banking services in Kenya. A non-probability method of sampling was utilized. Structured questionnaires were used as applicable. The study targeted all 42 Kenyan commercial banks/lenders. The 42 commercial bank managers were targeted as the unit of observation and the 42 commercial banks as the unit of analysis. Since the population in the current study was small but adequate for study research, that is, 42, the study used a census survey (thus no sampling was done) and thus the targeted population were still the commercial banks. Questionnaires were the instruments of data collection. The replies were transcribed and qualitative methodology was employed. The SPSS application was used to help with this analysis (v.25.0). Descriptive analytics gathered summary data such as averages, and frequencies, whereas inferential metrics aided in determining the causative link between parameters. The study used the R2s, F values, and beta coefficients at 0.05 significance thresholds. Charts, graphs, tables, diagrams, and illustrations were used to present the findings. Findings: The findings indicated that operational excellence has a directional/positive and statistically significant connection with competitive advantage of Kenyan commercial banks/lenders (β=0.342, p=0.000). It was also confirmed that customer intimacy has a directional/positive and statistically significant connection with competitive advantage of Kenyan commercial banks/lenders (β=0.247, p=0.000). Likewise, product leadership has a directional/positive and statistically significant connection with competitive advantage of Kenyan commercial banks/lenders (β=0.359, p=0.000). Unique contribution to theory, policy and practice: It has been recommended that having a high level of consumer awareness might lead to increased client satisfaction, which leads to increased buy back desire. Thus, recommendations are emphasized on the need for banking institutions to improve awareness and participation of customers in their operations to improve loyalty and satisfaction. The also recommends continuous and persistent innovation of products to help in the advancement and maintaining a competitive edge in the industry. Having superior products imply that the banks are able to maintain and attract a specific group of customers whom to the banks, ensure consistent sales and returns. The study also suggests to the operations management to continuously improve the financial institution delivery of services, consumer experience, purchase price and effectiveness, a considerable increase in income and profitability, and gives banks competitiveness. Sustainable distribution chain effectiveness is affected by learning and innovation efficiency, and supply chain intellectual capital plays an essential moderating function
... The extant management literature proposes various business strategy typologies to identify how firms compete in a given industry or market environment to achieve a high level of performance [24]- [30]. Common business strategies include rate of change to market view [1], product differentiation view [25], exploration view [29], and cost leadership [30]. ...
... The extant management literature proposes various business strategy typologies to identify how firms compete in a given industry or market environment to achieve a high level of performance [24]- [30]. Common business strategies include rate of change to market view [1], product differentiation view [25], exploration view [29], and cost leadership [30]. Specifically, Miles and Snow [1] identify three viable business strategies: prospector, analyzer, and defender based on the firm's rate of change in response to the respective products and markets. 1 Porter [25] classifies firms' business strategy into cost leadership and product differentiation. ...
... Specifically, Miles and Snow [1] identify three viable business strategies: prospector, analyzer, and defender based on the firm's rate of change in response to the respective products and markets. 1 Porter [25] classifies firms' business strategy into cost leadership and product differentiation. March [29] classifies business strategies into exploration and exploitation and Treacy and Wiersema [30] identify business strategies as operational excellence, product leadership, and customer intimacy. ...
... Value Disciplines categorizes organizations into three types: Customer Intimacy, Operational Excellence, and Product Leader- ship. Treacy and Wiersema (1995) argues that there is no company today can succeed by trying to be all things to all markets. But instead, the unique value that it alone can deliver to the markets must be found and excelled. ...
... Direct explanation on this statement is that the organizations do not abandon the other two disciplines when they choose to excel in a value discipline. These organizations only choose a dimension of value on which to stake their market reputation over the long term (Treacy and Wiersema 1995). Thus, there is only one value focus an organization would excel at in order to differentiate them from their competitors. ...
With the accelerating growth of internet users, a rise of globalization, distributed work environments, knowledge-based economies, and collaborative business models, it becomes clear that there is currently a high and growing number of organizations that demand a proper webstrategy. The emergence of web 2.0 technologies has led many internet companies, such as Google, Amazon, Wikipedia, and Facebook, to successfully adjust their webstrategy by adopting web 2.0 concepts to sustain their competitive advantage and reach their objectives. This has raised an interest for more traditional organizations to benefit from web 2.0 concepts in order to enhance their competitive advantage. This article discusses the effective webstrategy formulation based on the web 2.0 concepts in [21] and the differing requirements, characteristics, and objectives in different types of organizations. This research categorizes organizations into Customer Intimacy, Operational Excellence, and Product Leadership, according to the Value Disciplines model in [26].
... • Dodds et al. (1991;Treacy & Wiersema, 1995) conceptualize perceived value as "the result of comparing the perceived benefits of a product or service with the perceived sacrifice required to obtain it." ...
Globalization and advancements in healthcare have birthed a novel form of tourism known as medical tourism. Over the past decade, MT has witnessed a significant upsurge, evolving into a burgeoning industry. The increasing popularity of medical tourism can be attributed to a confluence of factors, including the development of electronic communication systems, the improved ease of international transportation, the utilization of social media as a marketing tool, and the emergence of more cost-effective healthcare options. Healthcare system shortcomings in developed nations manifested as lengthy wait times, legal hurdles, and high costs, have driven the medical tourism movement towards developing countries. Conversely, advancements in technology and the dissemination of information have facilitated the promotion and marketing of medical tourism. Furthermore, medical tourism's appeal is augmented by its ability to offer a confluence of quality healthcare and vacation opportunities, attracting patients seeking a holistic experience. This study investigates the impact of destination image and social media interaction on medical tourists' intentions to visit Turkey. It explores their visit motivations, perceptions of quality and cost, and how these factors, along with their destination image formed through social media interactions, influence their decision to choose Turkey for medical care. Survey data for analysis was collected via social media from 1124 participants. These included citizens from the eight top source countries for medical tourists to Turkey (2018-2022): Iraq, Germany, UK, Azerbaijan, Bulgaria, France, and Georgia, along with Turkish dual citizens residing worldwide. Data analysis involved frequency analysis, evaluation of internal consistency for employed scales, and assessment of construct validity for sub-dimensions using confirmatory factor analysis. Mediation analyses explored the role of mediating variables, followed by linear regression and hypothesis testing via R software. Bootstrapping with 5000 repetitions examined indirect effects in mediation models. The research findings demonstrate the significant role of social media in shaping the formation of visit intentions in medical tourism. It has been determined that participants actively utilize social media to acquire information about medical tourism services in Turkey, and this interaction enhances their visit intentions. The impact of social media on creating destination image and shaping perceptions of the quality and cost of medical services is crucial. Additionally, it has been identified that perceptions of cost and quality influence potential tourists' visit intentions. Therefore, it is essential for medical tourism service providers to effectively market their destinations and enhance perceived quality by sharing accurate and up-to-date information via social media. The findings indicate that Turkey possesses a strong competitive advantage in the medical tourism market. Among these advantages are the perceived high quality of medical services in the country, low costs, modern healthcare facilities, well-trained physicians, and a wide range of medical services available. Consequently, medical tourism destinations need to focus on various strategies to strengthen destination image and optimize service quality. The effective use of social media, enhancement of cost and quality perceptions, positively influences potential tourists' visit intentions, creates a favourable medical destination image, and supports the tourism sector.
... Rekabet stratejilerini açıklamaya yönelik araştırmacılar tarafından farklı modeller geliştirilmiştir. Alanyazında rekabet stratejileri konusunda Miles & Snow (1978), Treacy & Wiersema (1995) ve Porter'ın (1985) geliştirmiş olduğu yaklaşımların öne çıktığı görülmektedir. Miles ve Snow (1978) rekabet stratejilerini öncü, savunmacı, analizci ve tepkici olmak üzere dört boyutta ele almışlardır. ...
Bu araştırma, rekabet stratejilerinin örgütsel performans üzerindeki etkisini belirlemek amacıyla yapılmıştır. Araştırma verileri çevrimiçi anket uygulaması kullanılarak elde edilmiştir. Anket formları, kolayda örnekleme yöntemi kullanılarak İstanbul ili sınırları içerisinde üretim alanında faaliyet gösteren işletme yöneticilerine iletilmiştir. Anket formları 750 yöneticiye iletilmiş ve bunların 512'sinin istatistiksel analiz için geçerli olduğu kabul edilmiştir. Anket verileri SPSS paket programı ile analiz edilmiştir. Hipotez testleri için basit doğrusal regresyon analizinden yararlanılmıştır. Analiz bulgularına göre rekabet stratejilerinden maliyet liderliği stratejisi ve farklılaştırma stratejisi örgütsel performans üzerinde pozitif etkide bulunurken, odaklanma stratejisinin ise, örgütsel performans üzerinde negatif etkide bulunduğu belirlenmiştir.
... This, when coupled with the heterogeneous characteristic of service (Lovelock, 1983), provides a wide platform for re-understanding value and its dimensions in the services context. Treacy and Wiersema (1995) proposed a method to operationalize value into business practices. The authors indicated an amalgamation of three steps that any successful business should understand. ...
In the era of increasing competition there is a major shift in focus to providing value to the customers. This can be achieved by having a portfolio of satisfied customers and earning their loyalty. This study aims to capture the transition from satisfaction to loyalty by analyzing the effect of varying levels of satisfaction and loyalty on value dimensions (i.e., operational effectiveness, product leadership, customer intimacy and customer communication) in the Indian banking parlance. Additionally, the study reviews the impact of the variable length of the relationships on value dynamics. Using a survey questionnaire of non-student Indian nationals with 242 responses, and a two-phase analysis that used exploratory and confirmatory factor analysis along with MANOVA, the study finds out a significant and positive effect of customer satisfaction and length of banking relationships on perceived product leadership, perceived customer intimacy, perceived operational effectiveness, and perceived customer communication.
... A product differentiation strategy is associated with a restricted target audience, which intensifies the exclusivity of its products. On the other hand, a cost leadership strategy is associated with the benefits of large-scale production, which requires comprehensive market participation (Treacy & Wiersema, 1995). The lack of clear definition of these positions results in an unfavorable strategic situation known as 'stuck in the middle' (Porter, 1985), where the product delivered to the market neither has a lower cost nor differentiated quality, leading to low profitability (Kim & Lim, 1988;Porter, 1980;Thornhill & White, 2007). ...
This research aims to investigate the effect of generic positioning strategies (cost leadership and product differentiation), adopted in pure or hybrid form, on firms’ performance and to verify the moderating effect of product market competition in this relationship. A sample with 11,322 firm-year (2008-2019) observations, including data from firms in the G20 countries, was analyzed through logistic regression models. The competition level in the product market is measured using the Herfindahl-Hirshman index. The results indicate that firms adopting a hybrid strategy are more likely to achieve good performances than the others. The relationship between strategic positioning and operational performance is moderated by product market competitiveness level. In a low competition market, the adoption of a strategy is unnecessary. For low to medium levels of competition, pure strategy appears superior. In highly competitive environments, the hybrid strategy is more advantageous. This study brings a new discussion about choosing a more advantageous positioning strategy, in which the main issue is not which positioning strategy is superior, but under what conditions of the market environment the adoption of the hybrid strategy is related to superior performance. Contributing to advance in this research field, our outputs suggest that the effect of the positioning strategy on performance is moderated by the product market competition. The effort to establish a hybrid strategy is advantageous in highly competitive environments.
Keywords:
competitive strategies; cost leadership; product differentiation; hybrid strategy; product market competition
... There is a shift in the focus of investors who only focus on short-term profits [19]and some banking companies have not realized the importance of IC which enables competitive advantage and sustainable profits in the future [20]. [21]argue that although IC is considered important for the success of a company, some other assets and capabilities will also contribute to the profitability and market value of the company. The results of this study are different from research [22], [23]which explains that the importance of IC and knowledge are important factors affecting a company's ability to remain competitive in new markets. ...
... L'environnement actuel est extrêmement mouvant pour les distributeurs. L'époque où le bon emplacement (zone de chalandise, marché cible), le bon assortiment produits et les bons services garantissaient le succès est révolue (Tordjman, 1982 ;Bloch, Hababou et Xardel, 1986 ;Treacy et Wiersema, 1995). Les assortiments se sont banalisés et ne sont plus les armes clés du point de vente. ...
L’expérience de marque en magasin est un levier de construction du capital marque et du capital client, source de création de valeur pour la marque (revue de littérature et études exploratoires). Sa qualité est liée à sa capacité à servir ces objectifs. Le magasin de marque semble le lieu privilégié car les dimensions servicielles et expérientielles de l’expérience proposée sont conçues et mises en place par la marque elle-même. Elle est « authentiquement » de la marque (identification de la marque par l’expression de son contenu, authentification de l’expérience). C’est moins le cas dans les magasins de ses distributeurs où se côtoient l’expérience voulue par la marque, celle des concurrents et l’expérience proposée par l’enseigne. On peut parler de « multi-expériences ».Par ses attributs fonctionnels et transactionnels ainsi que ses dimensions émotionnelles et affectives, l’expérience en magasin crée de la valeur pour le consommateur (bénéfices économiques, pratiques, hédoniques, sociaux, psychologiques). Ses caractéristiques varient selon le lieu de vente et peuvent être recherchées par les consommateurs suivant leurs motivations expérientielles. Pour l’achat d’une marque, les individus ont le choix entre différentes propositions expérientielles dans un ensemble de considération de magasins. Recherchant une expérience et la valeur associée, ils choisissent un lieu de vente. Leur préférence est liée à la valeur attendue et à la qualité perçue que les marques doivent donc garantir. Pour créer cette valeur, elles doivent connaître les attentes expériencielles des consommateurs, comprendre sur quelles dimensions ils évaluent la qualité de l’expérience en magasin. Via une étude qualitative, nous avons recensé les attributs expérientiels de chaque canal, les caractéristiques d’une expérience en magasin « réussie », créatrice de valeur et les critères sur lesquels les individus jugent la qualité.L’objectif de la recherche est de vérifier si, dans le contexte « authentique » de ses propres magasins, la qualité de l’expérience de marque crée plus de valeur pour le consommateur et pour l’entreprise. Son originalité réside dans la mise en perspective de l’expérience de marque dans le contexte multi-expérientiel propre aux enseignes de distribution. Pour cela, nous proposons de mesurer et comparer la qualité de l’expérience de marque, la satisfaction et les répercussions relationnelles. L’objectif est également d’en valider les facteurs déterminants.Nous proposons une échelle de mesure de la qualité globale de l’expérience de marque en magasin, alliant des dimensions servicielles et expérientielles (intérêt méthodologique).L’intérêt théorique est, en premier lieu, de connaître les fonctions du magasin de marque : outil de communication ou/et de relation ? Second intérêt : la proposition du concept d’authenticité appliqué à l’expérience en magasin.L’intérêt managérial est d’identifier les leviers clés de l’expérience en magasin pour impacter la qualité perçue, la relation et les intentions comportementales. Les managers pourront confirmer l’efficacité de leur stratégie de distribution.D’après nos résultats, l’authenticité est décisive. La qualité perçue de l’expérience de la marque est meilleure dans ses propres magasins (idem satisfaction). Dans les deux types de magasins, elle impacte la satisfaction, l’attachement, les intentions de récit et de retour en magasin. En revanche, les répercussions sur la fidélité et l’attitude ne valent qu’en magasin de marque. Le sentiment de reconnaissance et la qualité du contact sont prépondérants.Les implications managériales son variées. Nous proposons des actions concrètes quel que soit le lieu de vente. Lieu de contact direct avec le consommateur, sans « l’entremise » d’un distributeur, le magasin de marque est un levier stratégique aujourd’hui et peut devenir, pour certaines marques, la clé de voûte d‘une une relation interpersonnelle qualifiée et durable avec leurs consommateurs.
... There is a shift in the focus of investors who only focus on short-term profits [19]and some banking companies have not realized the importance of IC which enables competitive advantage and sustainable profits in the future [20]. [21]argue that although IC is considered important for the success of a company, some other assets and capabilities will also contribute to the profitability and market value of the company. The results of this study are different from research [22], [23]which explains that the importance of IC and knowledge are important factors affecting a company's ability to remain competitive in new markets. ...
... Porter (1985) builds a business strategy including cost leadership strategy, product differentiation strategy, and concentration. Meanwhile, Treacy and Wiersema (1995) consider the strategy of effective operation, cost leadership, and customer intimacy. Research approaches business strategy according to Porter (1985) because: -According to Anwar and Hasnu (2016) argue that Porter (1985) is widely accepted and used in academic research. ...
Over the past decade, Vietnam has opened the market and attended in large economic organization like ASEAN Free Trade Area, ASEAN Comprehensive Investment Agreement, Regional Comprehensive Economic Partnership, Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Therefore, the increasing of product market competition has a significant impact on businesses. In order for businesses to improve firm performance, the solution needed today is to improve corporate governance system. Corporate governance not only helps to limit agency problem but also increases the role of inspection, control, and orientation for the development of business activities. The study examines the influence of product market competition on firm performance through the mediating role of corporate governance. Our data collected from Thomson—Reuters DataStream and finance report of 180 listed non—finance companies in Vietnam from 2015 to 2019. The research model and hypotheses were tested by Maximum Likelihood with Structural Equation Model method in Stata 14 software. The results showed that product market competition has positive effect firm performance through the mediating of corporate governance. Besides, the study revealed that business strategy negatively and significantly effects on product market competition and firm performance. Research results provide theoretical and administrative implications for improving firm performance.
... More formally, business strategy is defined as a series of actions undertaken by firms to gain a competitive advantage (Cannon, 1968). The literature on competitive advantage addresses different typologies of business strategies such as Miles et al. (1978) typology (prospector and defender strategy), Porter's (1980) typology (cost leadership, differentiation and focus strategy), March's (1991) typology (exploration and exploitation strategy) and Treacy and Wiersema's (1995) typology (operational excellence, product leadership and customer intimacy strategy). ...
Purpose – This study aims to investigate the impact of business strategy on the classification shifting practices of Indian firms.
Design/methodology/approach – The study considered cost leadership and differentiation strategy. Two forms of classification shifting, namely, expense misclassification and revenue misclassification have been examined in this study. Panel data regression models are used to analyze the data for this study.
Findings – The results show that managers of cost leadership strategy firms are more likely to be engaged in expense misclassification, whereas firms following differentiation strategy are likely to be engaged in revenue misclassification. Subsequent tests of this study suggest that firms following a hybrid strategy (mix of cost leadership and differentiation) prefer revenue misclassification over expense misclassification for reporting inflated operating performance. These results imply that firms prefer the shifting tool based on the ease and need of each shifting strategy. These results are consistent with several robustness measures.
Practical implications – The results suggest that investors should understand business strategy before developing insights about the accounting quality of firms. Investors should conduct a comprehensive review of income statement items before using items for portfolio evaluation.
Originality/value – To the best of the authors’ knowledge, this is the first study to examine the association between business strategy and classification shifting.
... (Porter and Millar, 1985) posits that a firm's business strategy falls under two classifications, one being "cost leadership," another being "product differentiation". Customers are described as highly valued and that their demand should be met at all costs by implementing strategies that enhance customer satisfaction and customer loyalty (Treacy and Wiersema, 1995). (Miles et al., 1978) recognizes four practical business strategy categories: prospectors, analyzers, reactors and defenders, in view of an association's rate of progress as for its items and markets. ...
Abstract
Our research paper investigates the relationship between CSR and firm performance to uncover the impact CSR has on market performance and financial performance. Our rationale is that in the case of emerging economies, CSR may not yield an immediate financial benefit, but we cede that the impact on financial performance is more of a spill over effect from a positive impact on market performance. A quantitative research design is adopted to test the proposed hypotheses. Data were collected from 100 SMEs in Zimbabwe. The proposed conceptual model was analysed using a multiple regression approach. The study's findings confirmed that business strategy moderates the relationship between CSR and firm performance. The conclusions of our investigation indicate that business strategy has a moderating effect on CSR and firm performance. Deducing from our survey findings, we recommend that SMEs should adopt prospector strategy and analyser strategies to effectively implement CSR initiatives.
... Source: Roberts (2005) Based on these assertions of these strategic-thinking's dominant paradigm, it is here fashioned a defensiveness matrix (Figure 1) termed of PAPEH, due to its five types of goals (protection, prevention, attacking, elimination, and hybridisation of goals). The design of the model accounts imperative of defensiveness highlighted by Roberts (2005), and Robertson and Gatignon's (1991) notion of defensive natures (retaliation or non), and articulated within the context of strategic goals (gn) and the modes (mn) of defensiveness (Spender et al., 2017;Roberts et al., 2005;Rogers, 2003;Treacy and Wiersema, 1995). Furthermore, its rationale accounts the three components of defensiveness advocated by Roberts et al. (2005), and finally, the conception of offensive endeavour and neutralisation, withdrawn from the merger and acquisitions (M&As) theory which according to Nahavandi and Malekzadeh (1988) may be accomplished by the cultural alienation of one firm (the acquiree), as the target of a deculturation process of identity replacement. ...
Startups innovativeness is in the spotlight of the media due to
their ability to alter social regimes across industries. Prior innovation has devoted particular attention to them, leveraging the advancement of other interdisciplinary fields, and emphasising a clear connection between innovation and business strategies realisation. Prior literature addressing the effects of disruptive innovation on competition dynamics have disproportionately focused on big firms. This gap constituted a starting point for focusing on the startups side and deliver a contribution transforming into the modelling (and testing) of a defensiveness referential framework (DRF) accounting defensive
classification (PAPEH matrix) and innovation-responsiveness boomerang model). A case research design is intertwined with archival data from four databases allowed the creation of a contrived dataset for testing the defensiveness phenomenon on 179 tech-startups, and further empirical validation by data triangulation with external secondary sources. Results unveiled a tendency of startups to implement either a pure entrepreneurial model or a hybrid defensiveness model. Fundamental differences were also encountered between the traditional tech-startups of the Lisbon Hub and digital Big Bang disruptors (DBBD).
... Source: Roberts (2005) Based on these assertions of these strategic-thinking's dominant paradigm, it is here fashioned a defensiveness matrix (Figure 1) termed of PAPEH, due to its five types of goals (protection, prevention, attacking, elimination, and hybridisation of goals). The design of the model accounts imperative of defensiveness highlighted by Roberts (2005), and Robertson and Gatignon's (1991) notion of defensive natures (retaliation or non), and articulated within the context of strategic goals (gn) and the modes (mn) of defensiveness (Spender et al., 2017;Roberts et al., 2005;Rogers, 2003;Treacy and Wiersema, 1995). Furthermore, its rationale accounts the three components of defensiveness advocated by Roberts et al. (2005), and finally, the conception of offensive endeavour and neutralisation, withdrawn from the merger and acquisitions (M&As) theory which according to Nahavandi and Malekzadeh (1988) may be accomplished by the cultural alienation of one firm (the acquiree), as the target of a deculturation process of identity replacement. ...
Startups innovativeness is in the spotlight of the media due to
their ability to alter social regimes across industries. Prior innovation has devoted particular attention to them, leveraging the advancement of other interdisciplinary fields, and emphasising a clear connection between innovation and business strategies realisation. Prior literature addressing the effects of disruptive innovation on competition dynamics have disproportionately focused on big firms. This gap constituted a starting point for focusing on the startups side and deliver a contribution transforming into the modelling (and testing) of a defensiveness referential framework (DRF) accounting defensive classification (PAPEH matrix) and innovation-responsiveness (boomerang model). A case research design is intertwined with archival data from four databases allowed the creation of a contrived dataset for testing the defensiveness phenomenon on 179 tech-startups, and further empirical validation by data triangulation with external secondary sources. Results unveiled a tendency of startups to implement either a pure entrepreneurial model or a hybrid defensiveness model. Fundamental differences were also encountered between the traditional tech-startups of the Lisbon Hub and digital Big Bang disruptors (DBBD).
... Treacy and Wiersema [62,63] outline potential business strategies that companies may successfully follow. They made a distinction between companies who excel in operations, in product leadership or who follow a customer intimacy strategy. ...
Extensive governmental and industry efforts have been devoted to developing innovative housebuilding systems. However, it appears a challenge for housebuilding firms to move beyond their demonstration status and get their housing system adopted at a large scale and over a longer period. This is problematic since worsening developments concerning the environmental impact, poor production efficiency and a lack of client orientation of traditional building practices remains unsolved. This article describes a multiple case study on the continued adoption of innovative industrial housing systems. The multiple case study centres around a housing system which is generally considered as a rare example of an industrial housing system that has succeeded in the last 30 years in maintaining a leading position in the Dutch housing sector. This article analyses the reasons for this continued adoption in contrast to three industrial housing systems which had to abandon the market. The case study findings show that at least five mechanisms play a determining role in the eventual continued adoption: the regional presence of the builder; the builders’ operational excellence; a natural fit with existing technology standards; a competitive added value, and; the ability of the house-builder to keep pace with changing market requirements. An important lesson from this study is that, for continued adoption, one needs to stay alert and adapt the housing system to changing market requirements.
... When the big-bang disrupters launch in the market they bring a lot of surprisesthey are up, and then fade away-which is due to their three main characteristics that Downes and Nunes [2, p. 5] described as: (1) unencumbered development: means that these innovations are "often born of rapid-fire, low-cost experiments on fast-maturing, ubiquitous technology platforms" in hackathons events in Silicon Valley that is not intended to disrupt the businesses, but some businesses are just collateral damage (i.e. Twitter was born in a hackathon in 2006); (2) unconstrained growth: meaning big-bang disrupters do not follow the traditional classic bell curve of Everett Rogers [16], so these types of innovation have an adoption curve closer to a straight line that heads up and then falls quickly (i.e., upon the launch of iPad everyone wanted to have one, even a millionaire); (3) undisciplined strategy: means that big-bang disrupters do not follow the strategic Discipline of Market Leaders introduced by Treacy and Wiersema [17] which stated to pursue only one dimension of low cost (operational excellence), constant innovation (product leadership), or customized offerings (customer intimacy), but big-bang disrupters rather have better performance at a lower price with greater customization which competes with the conventional products on all the abovementioned three value principals from day one (i.e., Smartphones killing the portable navigation tools such as Garmin and TomTom that lost 70 and 85% of their market capitalization) [2]. ...
The term disruption has widely been used across industries to conjure the innovation concept and support such discussions in different contexts, but what disruptive technology means and what characteristics of disruptive technologies or innovations are. Based on Christensen’s (Christensen, The Innovator’s Dilemma When New Technologies Cause Great Firms to Fail. Harvard Business School Press, Boston, Massachusetts, 1997, [1]) theory of disruptive innovation and big-bang disruption of Downes and Nunes (Harv Bus Rev, 44–56, 2013, [2]), this paper deeps dive into the concept of disruptive technology and big-bang disruption to discover the main features of such disruptions. It looks at the two concepts to uncover the characteristics of such disruptions and signify their differences. It reveals a research gap to be further studied and proposes empirical research to validate whether the traditional technology adoption of Rogers is applicable to disruptive innovations, or the newly proposed model of Downes and Nunes (Harv Bus Rev, 44–56, 2013, [2]), is more valid. The missing link is the lack of having the right marketing strategy for products and services which were born based on the theory of Big-Bang Disruption. Hence, the paper looks at the academic literature and presents some of the most relevant scholars’ outlook on disruption concept. It proposes the methodological strategies and the approach for the future study, which is positivism. It discusses the research design that is “case study” and its method of measurement and concludes by the expected contribution.
... Traditionally, SDL literature underscores the critical role of formulating and offering value propositions so that they can be accepted from customers (Vargo and Lusch, 2016;Payne et al., 2017). In analogy with customer value propositions, Among various definitions, relevant work defines value proposition as a statement of benefits offered to a customer group or as the price individuals are willing to pay (Lanning and Michaels, 1988;Treacy and Wiersema, 1995;Kowalkowski, 2011). Following prior definitions in this stream (Ballantyne et al., 2011;Chandler and Lusch, 2015), an EVP is defined as an invitation from one party (e.g. ...
Purpose-This conceptual paper aspires to reexamine the nature, aim and scope of Internal Market Orientation (IMO) and introduce it as a value creation mechanism for the firm's internal market. A service-dominant logic (SDL)-based perspective of the IMO notion is advanced and the key steps and phases for value creation in the internal market are outlined.
Design/methodology/approach-This conceptual paper bridges the IM discourse with the service-dominant logic literature and the latter's implications for internal marketing theory and practice are discussed.
Findings- Drawing on the premises of the service-dominant logic, IMO re-surfaces as an interconnected operant resource that can be enacted through performing three sets of activities central in the value creation process for internal stakeholders (i.e. value-identifying, value-generating and value-enhancing activities). These groups of relevant value-enabling activities required for IMO enactment are extensively discussed and their role in the value creation process is scrutinized.
Originality/value-This conceptual paper aspires to provide a managerially relevant understanding of value creation in the firm's internal market. A SDL-driven understanding of IMO is advanced setting it as a value creation mechanism appealing to a wider range of organizations.
... As an alternative to Porter's generic strategies, Treacy and Wiersema (1995) have empirically derived three strategic options for organizations based on market segmentation theory. According to this framework, there are three generic segments in any industry. ...
This study considered the concise adoption of generic business strategies in the accomplishment of corporate mission in multinational firms in Nigeria. Several attributes based on the resource and competence-based theories and models informed the nature of the study. Quantitative explanatory cross-sectional design was adopted using primarily the structured instrument designed on a 5-point Likert scale. Probability and non-probability sampling techniques were engaged in sampling 275 respondents from the multinational firms. The data obtained were analyzed using both descriptive statistics and regression analysis. The findings revealed that the generic business strategies have signify cant predictors of corporate mission accomplishment. Findings also revealed that there was positive significant influence between concise generic business strategies and firms' productivity.This paper recommended a mandatory and thorough environmental scanning in order to select the appropriate business stratagem to be implemented in achieving the precise aspects of the corporate mission.
... (Potgieter & Roodt, 2004). Hence, Treacy & Wiersema (1995) have identified three value disciplines in general such as Operational excellence, Customer intimacy and Product leadership on which organisations should focus. By adopting these dimensions and functioning that enables the organisations to fulfill the value added needs to customers. ...
Purpose: Recent studies highlighted the increase of competiveness and fluctuation in pharmaceutical market share, the industry facing tremendous pressure. Hence the sector has the necessity to embrace the goal of delivering their products and services with value. Specifically, diabetes care in the pharmaceutical industry has been an important agenda for providing high quality services and products to the customers in past few decades. Therefore, the present paper critically views the impact of value discipline dimensions on organizational performance and competitive advantage of diabetes care in both developed and developing countries.Design/ methodology/ Approach: This research involves in secondary data collection due to achieving the objectives framed. Moreover, it perceives the association between the variables is not possible, conducting interviews with respondents in both developed and developing countries are also difficultFindings: The finding shows that there is animpact of value discipline dimensions on organizational performance and competitive advantage of diabetes care in both developed and developing countries via secondary data collection method. Research Limitations/ Implications: This study is limited to secondary research and all the findings inferred are from the information available from secondary sources.Practical implications: The impact of value discipline dimensionson organizational performance and competitive advantage of diabetes care is effective in the context of both developed and developing countries.Originality/ Value: Understanding the value discipline dimensions impact on organizational performance and competitive advantage of diabetes care is anew one. Hence this paper proposes this concept in both developed and developing countries perspective.
... Such multi-level interaction can, to an extent, achieve a market strategy of both product leadership and customer intimacy (Treacy & Wiersema, 1995) and enable avoidance of the commoditization trap (Matthyssens & Vandenbempt, 2008). This interaction was also found to have enabled the host firms to enhance existing customer knowledge and provide a portfolio of competences and associated high-quality products capable of outperforming both those of competitors with greater market reach and those of smaller local niche firms lacking a proactive strategy. ...
The literature has often proposed a niche market strategy as the means by which producers of commodity-based products (e.g. steel, pulp and paper, and petrochemicals) can counter increasing competition, particularly from low-cost, low-price competitors. That strategy has primarily been viewed as defensive, i.e. the weaker producer builds protective barriers around its product to fend off competition. This paper proposes, on the contrary, that niche marketing can also be used as a proactive, or even aggressive, strategy to enable a firm to outperform competitors in both profitability and growth. The use of a proactive niche market strategy in practice is examined in case studies of three global Swedish steel firms that have achieved above-average profitability over time. We propose, as a result of our analysis, the concept of the proactive niche market strategy as one that employs a mix of five key activities: focusing on the customers' customers; making the effort to become a preferred supplier early in the process; interacting with customers at multiple levels; extending the product offering by adding services; and focusing on the development of “adjacent” products, markets, and applications.
... The matrix was developed with the characteristics of each organization type on one dimension [12], [27], and the seven web 2.0 key concepts on another dimension [21]. ...
With the accelerating growth of internet users, an increasingly rising level of globalization, distributed work environments, knowledge-based economies, and collaborative business models, it becomes clear that there is currently a high and growing number of organizations that demand a proper webstrategy. The emergence of web 2.0 technologies has led many internet companies, such as Google, Amazon, Wikipedia, and Facebook, to successfully adjust their webstrategy by adopting web 2.0 concepts to sustain their competitive advantage and reach their objectives. This has raised an interest for more traditional organizations to benefit from web 2.0 concepts in order to enhance their competitive advantage. This chapter discusses the effective webstrategy formulation based on the web 2.0 concepts in (O‟Reilly 2005) and the differing requirements, characteristics, and objectives in different types of organizations. This research categorizes organizations into Customer Intimacy, Operational Excellence, and Product Leadership, according to the Value Disciplines model in (Treacy and Wiersema 1993).
... The matrix was developed with the characteristics of each organization type on one dimension (Haggie and Kingston, 2003, Treacy and Wiersema, 1995), and the seven web 2.0 key concepts on another dimension (O'Reilly, 2005). ...
Lately, web technology has gained strategic importance. It can be seen in the growing number of organizations that realize the importance of a proper webstrategy in this globalization era, where distributed work environment, knowledge-based economy and collaborative business models have emerged. The phenomenon of web 2.0 technologies has led many internet companies and communities, such as Google, Amazon, Wikipedia, and Facebook, to successfully adjust their webstrategy by adopting web 2.0 concepts to sustain their advantage and reach their objectives. As a consequence, interest has risen from more traditional organizations to benefit from web 2.0 concepts in enhancing their competitive advantage. This paper discusses the influence of web 2.0 concepts in the webstrategy formulation for organizations with differing requirements, characteristics and objectives. The research categorizes organization types into Customer Intimacy, Operational Excellence and Product Leadership, based on the Value Disciplines model.
This study explores the intersection of business strategy and environmental, social, and governance (ESG) pillars within the communication sector. Previous research has primarily examined these elements in isolation, with limited emphasis on their integration within technology‐driven industries. In addition, most studies on digital transformation rely on cross‐sectional data, leaving a gap in longitudinal research. Addressing these gaps, this study analyzes Asian digital companies, investigating how business strategy influences ESG performance, which in turn, mediates business performance. Findings indicate that business strategy positively impacts ESG performance, ultimately enhancing overall business performance. This research highlights the importance of aligning business strategy with sustainable development in the communication sector. By focusing on longitudinal insights and industry‐specific implications, this study contributes to both academic literature and corporate practice. However, the study's regional scope may limit its generalizability. These findings reinforce the strategic advantages of embedding ESG principles within business frameworks, particularly in technology‐intensive industries.
Este artículo describe la implementación de un ecosistema digital en el Gabinete Psicopedagógico de la Universidad de Cienfuegos, para mejorar los servicios de orientación. Esta iniciativa aborda la creciente necesidad de integrar tecnologías en la Educación Superior, proporcionando herramientas digitales, como redes sociales y plataformas multimedia, para facilitar la orientación personalizada a estudiantes. Durante la pandemia se intensificaron los esfuerzos por ofrecer apoyo socioafectivo y cognitivo mediante recursos tecnológicos. El ecosistema incluye redes sociales como Facebook, Instagram y YouTube, diseñadas para promover la resiliencia y el bienestar emocional. Además, el estudio destaca la importancia de formar al personal en competencias digitales, optimizando los procesos de orientación para mejorar la experiencia de los usuarios. Las buenas prácticas sugeridas buscan mejorar la comunicación y asegurar la seguridad de la información, posicionando al Gabinete como un referente en la transformación digital de la orientación educativa.
The adoption of business strategies at the corporate level is often associated with the resource-based view theory. However, many scholars have not definitively determined whether aligning business strategies with the principles of the resource-based view theory is consistent with the perspective presented by stakeholder theory. This study examines the relationship between corporate business strategies and environmental disclosure. Specifically, we investigate whether CEO's managerial ability may strengthen the association by emphasizing stakeholder theory to address this inquiry. Using a sample of 1243 publicly traded companies registered with the Carbon Disclosure Project (CDP) from 2015 to 2021, our findings indicate that a firm's chosen business strategy significantly influences its environmental disclosure practices. In particular, we observe that firms pursuing an innovation-oriented business strategy (prospectors) are less inclined to disclose, initiate, or increase their environmental disclosures compared with those following a cost-efficient business strategy (defenders). To address endogeneity and ensure robustness, we conduct a battery of tests, including the entropy balancing approach, two-step generalized method of the moment using Arellano-Bond estimation, Heckman two-stage regression, and coarsened exact matching. This study offers valuable insights into the determinants of firms' environmental disclosure practices, with significant implications for policymakers, investors, and other stakeholders interested in promoting sustainability and corporate responsibility.
Purpose: Due to increased competition, the Kenyan banking system has had erratic performance in recent years. As a result, the major question is whether Kenyan commercial banks can use value disciplines to help them maintain their competitiveness. The study aimed to investigate the effect product leadership on competitiveness of Kenyan commercial banks. Methodology:. The research used a descriptive research design. The study comprised of businesses rendering commercial banking services in Kenya. A non-probability method of sampling was utilized. Structured questionnaires were used as applicable. The study targeted all the 42 Kenyan commercial banks/lenders. The 42 commercial bank managers were targeted as the unit of observation and the 42 commercial banks as the unit of analysis. Since the population in the current study was small but adequate for study research, that is, 42, the study used a census survey (thus no sampling was done) and thus the targeted population were still the commercial banks. Questionnaires were the instruments of data collection. The SPSS application was used to help with this analysis (v.25.0). Descriptive analytics and inferential metrics were used to analyze the data. Charts, graphs, tables, diagrams, and illustrations were used to present the findings. Results: The findings indicated that product leadership has a positive and significant relationship with the competitive advantage of Kenyan lenders (β =0.359, p=0.000). This implies that gains in a single unit of product leadership result in a 0.359-unit shift in the competitive edge of Kenyan lenders. Contribution to policy and practice: The study reveals a positive and significant connection between product leadership and the competitive advantage of Kenyan commercial banks/lenders. This suggests that banks that focus on developing innovative products, offering unique value propositions, and staying ahead in terms of product offerings are more likely to attain a competitive advantage. This finding contributes to knowledge by emphasizing the importance of product innovation and differentiation for achieving a competitive edge in the banking industry.
In this study, we investigate whether different types of business strategy are related to financial opacity and, if so, whether financial constraints and decreasing production demand exacerbate or mitigate financial opacity. Using a sample of listed firms in Taiwan from 2013 to 2018, we find that defenders mitigate financial opacity through loss avoidance and exacerbate financial opacity through aggressive earnings, especially when they face lower financial constraints and during decreasing production demand. However, prospectors do not exacerbate financial opacity by smoothing earnings especially when they face higher financial constraints and their production demand is increasing. Our study should be of interest to researchers and financial statement users, as well as others concerned with understanding the effects of different types of business strategy on different levels of financial opacity.
We examine how the peer effects arising not only from the leading firm but also from a slightly better performing firm affect the capital structure decisions of a firm. There is a large body of literature documenting the importance of peer effects, but it is unclear whether managers pay close attention to activities of slightly better performers. This study uses both book‐ and market‐value based approaches to estimate the peer effect measures. Our analysis shows that: (1) our peer effect measures induce the convergence of the follower firms' capital structure towards better performing firms; and (2) the capital structure converges more towards a slightly better performer.
El objetivo de este trabajo fue determinar cuáles son los factores de desempeño competitivo de las microcooperativas de producción de la Ciudad de México. Con base en la revisión de la literatura se construyó un cuestionario para identificar los factores de desempeño competitivo en cooperativas exitosas. Se aplicó el método de caso múltiple con la finalidad de hacer un estudio en profundidad. Los principales hallazgos permiten determinar que los factores sobresalientes de desempeño competitivo en las microcooperativas de producción son: la calidad, el capital intelectual, clientes satisfechos, la tecnología, competitividad en precios y cercanía con su red de trabajo.
z Tüketicilerin alışveriş tercihlerinin altında yatan birçok faktör olmakla birlikte, bunlar arasında en önemlilerinden birisi tüketici değerleri olarak kabul edilmektedir. Özellikle genç yetişkinlerin kendilerini ifade etmede önemli bir araç olarak gördükleri cep telefonlarının tercihi ve kullanımlarında da tüketici değerlerinin önemli olduğu düşünülmektedir. Bu çalışmanın amacı üniversite öğrencilerinin cep telefonu kullanımlarının altında yatan hedonik ve faydacı değerleri incelemek ve bu değerlerin öğrencilerin tatmin ve tutumlarındaki belirleyici rolünü araştırmaktır. Araştırmanın amacı kapsamında faydacı ve hedonik değerler ile müşteri tatmini ve tutum değişkenleri arasındaki ilişkiyi gösteren bir model oluşturulmuştur. Bu modele ilişkin yapılan analizlerde hem faydacı hem de hedonik değerlerin müşteri tatminini, müşteri tatmininin de tutumu pozitif yönde etkilediği sonucuna ulaşılmıştır. Abstract While there are a number of factors underlying the shopping preferences of consumers, one of the most important ones is consumer values. Consumer values are of remarkable importance in the brand preferences and uses of mobile phones, which particularly the young adults accept as a means of self-expression. The aim of this study is to analyse the hedonic and utilitarian values underlying the mobile phone preferences of young adults and also research about the determining roles of these values in the satisfaction and attitudes of students. A model has been established to indicate the relationship between the hedonic-utilitarian values and consumer satisfaction-consumer attitude. According to the analysis pertaining to this model, it has been found out that both the hedonic and utililarian values have an influence on consumer satisfaction, and that consumer satisfaction affects the consumer attitudes.
The study aims to assess the effectiveness of STP (Segmentation, Targeting and Positioning) of L'Oreal products in Saudi Arabia in terms of the effectiveness of the Market Segmentation, Targeting and Positioning applied by L'Oreal and the most influencing factor among STP strategies of L'Oreal Products. In this research, to adequately address the research questions a variety of data collection methods and instruments were used. The purpose of the study was to Effectiveness of Segmentation, Targeting and Positioning Strategy of L'Oreal Products in Kingdom of Saudi Arabia. The effectiveness of the STP strategy was undertaken using a survey. The research was conducted through a survey, using the questionnaire as the research instrument. The respondents of the study are saloon employees in the eastern province of Saudi Arabia. The used research instrument uses the five-points Likert scale. The statistical tools used in the study are multiple regression analysis and weighted mean. From the study, the researcher concluded that there STP marketing strategy of L'Oreal is effective. The study provides recommendations by the researcher in assessing those questions around effectiveness of STP Strategy of L'Oreal in Kingdom of Saudi Arabia.
Jedes Mutterunternehmen hat die Aufgabe, die bestehenden Strategien und Geschäftsmodelle der Beteiligungen zu überprüfen und deren Entwicklung mehr oder weniger aktiv zu begleiten. Entweder werden die Ziele vorgegeben oder die Beteiligungen werden bei der Strategieentwicklung begleitet. Der Hauptfokus der Begleitung durch die Akteure des Mutterunternehmens liegt auf der Entwicklung von Ideen und in der anschließenden Integration der neuen Ansatzpunkte in neue oder bestehende Geschäftsmodelle der Beteiligungen. Mit diesem Instrument leistet das Beteiligungsmanagement einen wichtigen Beitrag zur wirtschaftlichen Zukunft der Beteiligungen.
The study aims to assess the effectiveness of STP (Segmentation, Targeting and Positioning) of L'Oreal products in Saudi Arabia in terms of the effectiveness of the Market Segmentation, Targeting and Positioning applied by L'Oreal and the most influencing factor among STP strategies of L'Oreal Products. In this research, to adequately address the research questions a variety of data collection methods and instruments were used. The purpose of the study was to Effectiveness of Segmentation, Targeting and Positioning Strategy of L'Oreal Products in Kingdom of Saudi Arabia. The effectiveness of the STP strategy was undertaken using a survey. The research was conducted through a survey, using the questionnaire as the research instrument. The respondents of the study are saloon employees in the eastern province of Saudi Arabia. The used research instrument uses the five-points Likert scale. The statistical tools used in the study are multiple regression analysis and weighted mean. From the study, the researcher concluded that there STP marketing strategy of L'Oreal is effective. The study provides recommendations by the researcher in assessing those questions around effectiveness of STP Strategy of L'Oreal in Kingdom of Saudi Arabia.
This study examines the relationship between business strategy and the trading profits earned by corporate insiders. Firms following prospector and defender strategies have different objectives and different firm characteristics, which affects the level of information asymmetry that can be used advantageously by insiders. Based on a sample of Chinese-listed firms from 2012 through 2015, we find that the profitability of trading by insiders at prospector firms is higher than the profitability of trading by insiders at defender firms. Additional analyses reveal that this finding is primarily attributed to insider sales and male insider trades and that it is also driven by firms not subject to trade restrictions and family-controlled firms. Identifying business strategies used by firms where insiders' trades are more profitable could be relevant to regulators.
This paper is the first to investigate and measure the transient competitive advantage readiness among hotels, cafes, and fashion retail industry in Bandung, Indonesia. From a total of 60 managers of hotels, cafes, and fashion retails in Bandung, this study found that the transient competitive advantage readiness among three different businesses is identical and all acquired low score. The result from the Levene's test for equality of variances and the Kruskal-Wallis measurement together with descriptive analysis supported previous observation that most managers of hotels, cafes, and fashion retails in Bandung do not have enough readiness and proper strategy to create the transient competitive advantage.
Purpose
– The purpose of this paper is to revise Burgelman’s idea (1991, 1994) that induced strategic processes is necessarily variation-reducing. In doing so, the authors explore whether major change in a firm’s administrative system can be managed in an evolutionary fashion via induced variation-increasing mechanisms. In particular, the authors focus on a multi-business multinational firm in which different administrative systems were experimented simultaneously as a way to determine which of these systems provided the most conducive context for innovation and capability development.
Design/methodology/approach
– The authors adopted an inductive perspective and developed a single case research project aimed at documenting the process of experimentation and subsequent selection and adoption of a new administrative system by a large multi-business multinational firm.
Findings
– The paper’s main contribution is the concept of “induced variation”, understood as intra-organizational variation-increasing mechanisms deliberately created at the top level of the organization to trigger an intra-organizational evolutionary process of management innovation. This finding extends and modifies Burgelman’s discussion of induced and autonomous strategic behavior by showing that induced processes need not necessarily be variation-reducing, but may actually be variation-increasing. Additionally, the authors explain how an evolutionary process aimed at learning about the relative merits of alternative administrative systems through in vivo “reflection in action” (Schön, 1983) unfolds in a complex global organization.
Research limitations/implications
– While the work provides several insights on the development of an evolutionary process leading to management innovation, its inductive nature limits its external validity and requires the development of further work for such purpose.
Practical implications
– The authors explore the roles of regional organizations in creating new corporate capabilities for the MNC.
Social implications
– The authors show how management capabilities developed in the Latin American context were rolled out to other locations.
Originality/value
– The authors' findings confirm that major drastic reorganization initiatives can actually be approached using an evolutionary approach.
As it has in all areas of today’s business and social environments, the advent of the computer has also caused a revolution in logistics management. As the complexity of managing today’s enterprise expands and the speed by which information concerning products, customers, and processes accelerates, logistics functions can have little hope of responding effectively without applying computerized information systems. Many areas impacted by the computer have already been discussed in previous chapters: the integration of the operating functions of the enterprise, solutions that accelerate ordering processes and shrink delivery time to customers, electronic data interchange (EDI) systems providing connectivity between companies, planning systems that facilitate inventory control, PCs (personal computers) that eliminate the guesswork involved in transportation routing and scheduling, and many others. The use and complexity of such tools can only be expected to grow, changing the way companies have traditionally serviced their customers and provided products and how they communicate with supply channel partners.
This paper presents the results of a study on the human resource function in Chinese operations of large multinational companies. Surveys of both line and HR executives in these firms were conducted. Results reveal that line executives are quite sensitive to the critical nature of people management issues as busi ness issues, and that they see HR's strategic orientation as the most significant area for improvement. Both line and HR executives note the importance of acquiring, developing, and retaining human capital in order to successfully compete in China. The challenges and opportunities implied by these results are discussed.
In a context of increasing competitiveness, it is a key issue that companies seek sources of differentiation which allow them to obtain competitive advantage in the market place. In the BtoB market, formed by companies which acquire products and services for the production of other products and services that will be sold to their customers, efforts in order to establish relationships and generate relationship of loyalty to retain customers and reach long-term profitability objectives. The intensification of the relationship in the BtoB sector is based on trust that triggers the exchange of strategical information which will enable the development of customized offers that should be effective to BtoB clients. Understanding
Matching Porter's (1980) three generic strategies appropriately in each of the four arenas of hypercompetition is proposed to offer temporary competitive advantages. The longer-term sustainability of these competitive advantages is argued to depend on matching the firm's resources/capabilities with the provision of customer value and needs, as well as the presence of isolating mechanisms in the industry/market environment. Stringing together a series of such ephemeral advantages can enhance the firm's competitiveness in the long-run.
This paper presents the findings of an empirical study conducted with 256 senior marketers in industrial and technological organisations. The results confirmed that the status of marketing in such organisations is low, but that this is likely to change due to a number of factors. Managers identified objectives that they prioritised for future success, which were positively correlated with intuitively appropriate strategies. The managers also identified the skills and abilities that they considered important in the future, providing valuable guidance for management educators.
Retail technologies vary in their success in countries other than where they were developed to some degree based on the nature of the environment that they encounter. Elements that contribute to the success of a retailing form in one country's culture may be absent in the culture of another country making the international transfer of retailing technology less successful. This study examines the entry of warehouse clubs into the Asian environment in terms of how well this retail technology, primarily developed in the West, meets the needs of Chinese customers.
This paper examines some sources of strategic simplicity: the tendency of strategies to focus on a few competitive tactics or methods. Simple strategies can be contrasted with those that are comprehensive and multifaceted. An empirical study of four Canadian industries revealed that environmental uncertainty and environmental scanning are both negatively related to simplicity. This supports a functional rationale that more comprehensive strategies are demanded by uncertain environments, and that scanning helps managers design such strategies. It also supports a cognitive rationale that uncertainty and scanning help combat tunnel vision and broaden managerial mental models. However, uncertainty and scanning were also found to interact negatively in their impact on simplicity: paradoxically, scanning is especially likely to reduce simplicity if the environment is stable, and uncertainty is especially likely to reduce simplicity in the absence of scanning. This finding is difficult to interpret using a functional rationale. Managerial responses thus may be quasi‐rational in that seemingly functional main effects appear less so upon exploration of the interaction effects and performance implications.
Résumé
Cette recherche examine quelques sources de simplicité stratégique: la tendance des stratégies de se concentrer sur quelques tactiques ou méthodes compétitives. Les stratégies simples peuvent ětre comparées aux stratégies exhaustives et complexes. Une étude empirique de quatre industries canadiennes révèle que l'incertitude et l'exploration environnementales sont toutes deux reliées de façon négative à la simplicité. Cela appuie une argumentation selon laquelle certains environnements requièrent des stratégies plus exhaustives et l'exploration aide les administrateurs à concevoir de telles stratégies. Cela suppose également un résultat antérieur qui veut que l'incertitude et l'exploration aident à contrer la vision simpliste et à élargir les schémas conceptuels des gestionnaires. Toutefois, nous avons démontré que l'incertitude et l'exploration interagissent de façon négative par rapport à leur impact sur la simplicité: de façon paradoxale, l'exploration semble particulièrement apte à réduire la simplicité lorsque l'environnement est stable tandis que l'incertitude est plutǒt sujette à réduire la simplicité lorsque l'exploration est absente. Cette découverte est difficile à interpréter à l'aide d'une compréhension fonctionnelle des organisations. Les réponses des gestionnaires apparaissent donc quasirationnelles dans le sens où des effets principaux, fonctionnels en apparence, semblent perdre cette particularité lorsqu'on explore les effets de l'interaction et ceux de la performance.
Under market-focused management (MFM) the whole organization is engaged in the satisfaction of customers' needs—so much so that MFM becomes the philosophy and modus operandi of doing business and customers become the reason for the organization's existence. If this is to happen, human resource philosophies, policies, and practice must be conducive to MFM. The objectives of this article are to briefly review the implications for human resource management. The merits of adopting the business philosophy of MFM as compared to other traditional alternatives have been discussed in detail elsewhere (Webster, 1992; Day, 1990; Kohli and Jaworski, 1990; Narver and Slater, 1990; Grover, 1995). Here we focus on describing human resource philosophy, policies, and practices options that are affected by MFM.
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