10 terms

Market Orientation - SCA

Talking Points 2
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Difference from Kohli and Jaworski article
Aims to determine whether market orientation can create a source of SCA or if it is a cost of doing business. Furthermore, how much and for how long does the created SCA hold.
Kohli and Jaworski aimed to define market orientation and determine the circumstance where it is the best strategy.
Market Turbulence
The greater the market turbulence the greater the relationship is between market orientation and sales/profit but this effect diminishes overtime. similar to kohli and jaworski
Technological Turbulence
The greater the turbulence the less correlation there is for the relationship between market orientation and sales/profit but this effect diminishes over time. similar to kohli and jaworski
Competitive Intensity
The greater the intensity the greater the relationship is between market orientation and sales/profit but the effect diminishes over time. similar to kohli and jaworski
For Market Orientation
1) Develops a learning organization. Sales and profits are linked to understanding market needs.
2) Encourages culture of experimentation and improving firm's processes and systems.
Against Market Orientation
1) Leads to narrow focus on current customers and their stated needs.
2) Strategy could be imitable.
3) Becomes cost of doing business in industry in the future.
Profits vs Sales
Market orientation makes organizations focus more on retention than acquisition and therefore profits increase much more than sales.
Early Adopters
SCA from market orientation is much greater for early adopters.
Extend SCA
Identify service-related dimensions of market orientation to further distinguish business.
Conclusion
Market orientation is essential for competitive industries and should be used to navigate turbulent times.
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