Mkt Reading

Market-Driven Versus Driving Markets

* Conceptual Framework composed based on the market behavior and market structure

* Market behavior focuses on the behavior of any player in the industry

* Market structure is a set of players and the roles played by them aka the value chain.

* Market driven & Driving market

* Learn, understand and responding to the stakeholder perception

and behaviors within a given market structure.

* Multiplicative function a) the number changes affected in a market

b) the magnitude of those changes

* Company can both drive market and be market driven; it is complementary but not substitutes approaches.

* Driving market

* Shaping the market structure and behavior: constructionist, deconstructionist and functional modification.

* Focuses on the change in the market structure have the potential to improve customer value or the performance f the focal business.

* Shape market structure

a) Eliminating players in market (deconstruction approach)

b) Building a new or modified set of players (construction approach)

c) Changing the functions performed by players

a) Deconstruction

Eliminating players in the industry field in the area of

* Channel, (eliminating in the channel od distribution)

eg, Dell change the behavior of customer,

Calyx and Corolla focuses on eliminating costs but provide same quality

* Competitors (eliminating competitors in focal firm’s market)

Eg. The telecommunication alliance of BT and AT&T

* Suppliers (lower the cost or increase functionality)

Eg. Intel acquisition with Chips N Technology with the 3D technology

b) Construction

Additional players into the industry value chain.

* Build a new web player, (eliminate player in the traditional value-chain)

Eg. Audio industry (CD)

* Spider vs spider competitor, (2 competing standard go head to head, the winner take the advantage and the positive feedback)

*...