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Competitive strategy in the market-focused business
Authors:Stanley F Slater  John C Narver
Institution:(1) College of Business and Administration, University of Colorado at Colorado Springs, 80933-7150 Colorado Springs, CO, USA;(2) Graduate School of Business Administration, University of Washington, 98195 Seattle, WA, USA
Abstract:Market orientation is a business culture which enlists the participation of all employees for the purpose of creating superior value for its customers and superior performance for itself. A substantial body of research finds a positive relationship between a business's magnitude of market orientation and its performance. However, there has been no research into the competitive strategies through which a market-oriented business creates customer value. This paper extends previous work by showing that market-oriented businesses aggressively develop new products and services, focus on opportunities in market segments rather than in the mass market, and attempt to achieve competitive advantage both by increasing customer benefits and by reducing costs.
Keywords:market orientation  competitive strategy  business performance
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