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International Business: Microsoft Case Study .

5278 words - 21 pages


Marvin Horkins
Student Nr: 109730

2009International Business ASSIGNMENT Table of contents3Question 1:. 7Question 2: 10Question 3: 15Question 4: 18Question 5: 23Bibliography Question 1: Discuss the conflict between the "market driven" and "driving markets" approach of Microsoft. Which approach do you consider Microsoft utilizes? Customers first? Or Innovation Driven? Justify.Customer and market focus is a philosophy of putting the needs of the customer first in every aspect of an organization. (Barrett, 2001:1)In order for me to discuss the conflict between "Market Driven" and "Driving Markets/Innovation" approach of Microsoft; let me start by defining and exploring the characteristics each of these concepts individually.Market DrivenThe (Vijay Luthra) defines Market Driven as "Firm's policy or strategy guided by market trends and customer needs instead of the firm's productive capacity or current products."Narver and Slater (1990) defined market orientation as "a business culture committed to the continuous creation of superior value for the customers."According to Jaworskit, Kohli & Sahay (Market-Driven Versus Driving Markets , 2000), market driven refers to a business orientation that is based on understanding and reacting to the preferences and behaviours of players within a given market structure. Driving markets, on the other hand, implies influencing the structure of the market and/or the behaviour(s) of market players in a direction that enhances the competitive position of the business.There are three generic ways of changing the structure of a market:(1) Eliminating players in a market (deconstruction approach),(2) Building a new or modified set of players in a market (construction approach)(3) Changing the functions performed by players (functional modification approach)Market behaviour can be modified directly or, alternatively, indirectly by changing the mind-set of market players (e.g., customers, competitors, and other stakeholders). (Market-Driven Versus Driving Markets , 2000).The market driven formula for success in today's marketplace according to Bill Barret (Barrett, 2001), is to produce the right product at the right price at the right time. The right product is the one that solves the customer's problem and delivers the highest value. The right price is what the customer is willing to pay.From the different views on market orientation, Uncles (2000) defines market orientation to be a set of organizational characteristics:Market-driven organizations have a thorough understanding of customers and potential customers, including their changing needs and wants.A key activity for a market-driven organization is information gathering. Market-driven organizations continuously gather data in all environmental sectors - competitive, cultural, political, economic, technological, human resources, physical resources, and consumer.The market-driven concept is a managerial concept. Close attention must...

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