Wednesday, June 15, 2011

Factors related to Taking the Appropriate Strategic Direction

"People should not be unfamiliar with strategy, those who understand it will survive, those who do not understand it will perish," Sun Tzu's, The Art of War.


In deciding on a strategy to pursue in the delivery of a consumer value proposition, there are some factors to consider in enabling the achievement of an envisaged strategic direction. The appropriateness of a selected business strategy is affected by underlying market structure, as this determines the effectiveness or relevance of an operational effectiveness strategy. In addition, the sustainability of a business model is determined by the capacity to deliver a differentiated brand image that consumers will trust and remain loyal to as market rivalry increases. Without a well constructed and integrated marketing strategy, consumers will be confused and unable to perceive value in an organization’s market offering.


In a research article published in Journal of Marketing (2005: vol. 65), Olson, Slater and Hult discuss the implication of the fit between strategy, business capability and branding on organizational performance and market behavior. In fact they agree with assertions made by Porter in “What is Strategy” by going to the extent of including this quote, “it is harder for a rival to match an array of interlocked activities than it is merely to imitate a particular sales-force approach, match a process technology, or replicate a set of product features.” Their contribution to furthering Porter’s approach to defining optimal strategy is, the formulation of a framework assessing the impact of different marketing organizational structures on the performance of organizations’ differentiated brand positioning.

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