It is motivated by the assumption that the planning cycle is inadequate to deal with the rapid rate of change that can occur in a firm’s external environment. Recognition of the demands of a rapidly changing environment has stimulated the development or increased use of methods systems and options that are responsive.
Strategic Market Management is productive and future oriented. Managers should have a clear, shared understanding of how their industry may be different in a couple of years to come and a strategy for competing in that world.
Strategic Market Management challenges managers to evaluate the extent to which;
- They become distinctive and foresighted rather than conventional and reactive.
- They view the future of the industry
- Competitors view the company as a rule maker rather than the rule follower.
- The company is mostly out in front rather than catching up.
- The company’s strength is in innovations and growth rather than in operational efficiency.
Strategic Market Management Characteristics and trends.
- External market orientation.
Organizations need to be oriented externally towards customers, competitors, the market and the market environments. The goal is to develop market driven strategies that are sensitive to the customers.
- Pro-active strategies.
A proactive strategy attempts to influence events in the environment rather than simply reactive to environment forces as they occur.
- An external orientation puts demands on the information system.
The determination of what information is needed how it can be obtained efficiently and effectively and how it should be analyzed, processed and stored can be key to an effective strategy development process.
- Knowledge Management.
Knowledge is a key asset to any organization be it technological, marketing, process or other ingredients of success. Since knowledge resides in the minds of individuals, the challenge is to captive that knowledge in a form that it can be retained and maintained over time and can be shared by a wide group of people.
- Online analysis and decision making.
Online system is demanding and requires new methods and concepts of information gathering, analysis and strategic decision making. The system must be structured enough to provide assistance in an inherently complex decision context, sensitive enough to detect the need to precipitate a strategic choice and flexible enough to be applied in a variety of situations.
There is need to be concerned about whether the strategy fits the organization- its structures, systems, people and culture or whether the organization can be changed to make the strategy fit.
- Longer time horizon.
A longer time horizon is needed for most businesses in order to create and implement strategic initiatives, need to develop assets and competences that are needed for ultimate success.