Market Orientated Strategy

Market Orientated Strategy

Introduction

Market orientation has been identified as the most crucial success ingredient for both small and large companies. Unfortunately, many small businesses' failure results from the ignoring the factor of market orientation. The lack of understanding about the target market can be ranked the top 10 reasons for small business failure. Due to the ponderance of this factor, it can quickly lead to many other problems, such as cash flow problem. Being able to recognize the correct time for when a shift is needed in a company's strategy requires vision and experience. To shift one's focus means to abandon previous ways of executing tasks and coming up with innovative ways of carrying out new ideas. Last week I visist the Sewing machine company as a marketing consultant where I observed that Viking company has to change its corporate strategy, and their main success depends on the willingness of their entering management team to carry out a complete transformation and the fact that they will be able to keep both the customers and their dealers satisfied.

Company Where I visit

As a marketing consultant initially I collect some important information about the company. Viking had a change in its top management following its acquisition by Industrial Kapital. The previous CEO, Jörgen Johansson resigned, and the position will be offered to Svante Runnquist of Volvo. Bringing my personal knowledge as a marketing consultant into Viking environment will bring new and innovative changes into the company.

Market Orientated Strategy

Mission Statement

As a marketing consultant I suggested them a new mission statement will be drafted during this off-site workshop that will reflect what Viking Sewing Machines will be to become. The strategy document will be often referred to for guidance on operational matters and the mission statement will be frequently promoted in the company's public relations. The new mission statement is very representative of what Runnquist had in mind when he signed up to lead Viking (Graham Hooley, John Saunders, Nigel F. Piercy, 2003):

“To develop, produce, market and sell household sewing machines and related products, which enhance the joy of creative sewing.

To grow our business by creating demand for more creative uses of sewing.

To be a consumer-driven company, securing growth, profitability, and success by providing superior satisfaction to the Consumer and our Dealer-Partner by continuously adding value to the Husqvarna-Viking brand.

To provide valued employees growth opportunities in an environment of which they can be proud.

To be recognized as the leading premium sewing machine company in the world.”

What I observe that is In Europe, Viking had more of a struggle. Exclusive dealerships are inexistent, so differentiation will be even more of a challenge. Even though it is not implied in the case by it can be inferred that their European sales relied heavily in their domestic market. The reason for this is that Runnquist states “Our organization in the USA is particularly successful. Over there, people willingly pay 5-600 dollars to be in on a three-day course with a sewing ...