by Freddy Rangkuti

Created on: September 23, 2007

Everybody now, Market- Driven Strategy (MDS) is very essential in formulating business strategy. Here, the approach used is always market-oriented and customer-oriented. Next, understanding what do the customer do, understanding the customers behavior s and measuring the interaction among customers. Therefore, the main point is always orienting to the market and customers in every business activity performed.

Market and customer oriented means having orientation on three focused, competitor intelligence and cross-functional team in the formulation of marketing mix, thus it will form a competitive advantage.

Characteristics of MDS
The key to become a market-oriented and customer-oriented company is to understand the market and develop MDS. All of these deeply need the information concerning customer, competitor and market.

Hence, the whole information can be observed from business view as:
- Determining how to deliver superior customer value
- Taking action to provide value to the customer
From the above information, we know that based on research and experience of practical business, related with logic and value to become market oriented.

Whereas the important characteristics of MDS are:
- Market-oriented company is always determining its distinctive capabilities, which are not easy to be copied by its competitors.
- Provide the best customer value, in accordance to the capabilities possessed by the company.
- Successful MDS strategy will create superior customer value.

The above diagram is the framework to develop market driven strategy. The strength of this strategy lies in the focus on customers and focus on competitors. In order for this strategy to succeed rapidly, the development of this strategy must be related with organization's unique competitive strategy, such as, Dell Computer, Singapore Airlines, Tiffany & Company, and Wall-Mart.

The measurement of MDS used two instruments, namely:
- Balanced score card (to measure customer, learning and growth)
- Internal Business Process (includes measuring financial performance)
According to Craven (2000:6)

"A business is market oriented when its culture is systematically and entirely committed to the continuous creation of superior customer value".
"Market orientation involves the use of superior organizational skills in understanding and satisfying customers".

In order to become a market-oriented company, such company must be involved and has full support to the entire work. This means, the company must monitor rapidly the changes

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