Strategic Planning

Strategy and the Internet by Michael Porter

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By Michael Porter

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Extra resources for Strategy and the Internet

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The real customer focus and responsiveness of the company is the context in which marketing strategy is built and implemented. qxp 15/6/05 10:16 am Page 22 CHAPTER 2 ASSESSING THE INTERNAL MARKETING SITUATION Another issue is that the marketing process should be seen as interfunctional and cross-disciplinary, and not simply the responsibility of the marketing department. This is the real value of adopting the process perspective on marketing, which is becoming more widely adopted by large organizations.

SWOT analysis is just one aid to assessing the current situation – it is not the only technique available. It has its weaknesses in that it tends to persuade companies to compile lists rather than to think about what is really important to their business. It also presents the resulting lists uncritically, without clear prioritization, so that, for example, weak opportunities may appear to balance strong threats. The aim of any SWOT analysis should be to isolate what will be important to the future of the organization and what subsequent marketing planning needs to address.

It should be emphasized that a market orientation is not the exclusive responsibility of a marketing department but, rather, is a company-wide mode of operation. Research suggests that market orientation is related positively to business performance (Narver and Slater, 1990). Further, it is likely to be strongly related to performance under conditions of high market turbulence, technological stability, strong competition and a weak economic environment. A market orientation yields higher customer satisfaction and repeat business, and appears to increase employees’ commitment to their organizations.

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