Organisational opportunities and resources ( Involves three considerations…
Organisational opportunities and resources
Involves three considerations (Dibb et al., 2016, p. 46):
understanding the organisation’s capabilities and assets.
evaluating marketing opportunities
‘Circumstances and timing that allow an organisation to take action towards reaching a target market’ Dibb et al. (2016, p. 47)
There are only limited periods during which the ‘fit’ between the key requirements of a market and the particular competencies of a firm competing in that market is at an optimum. Investment in a product line or market area should be timed to coincide with periods in which such a strategic window is open. Conversely, disinvestment should be contemplated if what was once a good fit has been eroded, i.e. if changes in market requirements outstrip the firm’s capability to adapt itself to them. (Abell, 1978, p. 21)
Markets are dynamic, and ensuring a good fit between market requirements and an organisation’s competencies necessitates as accurate as possible an appraisal of both how the market is likely to develop and the organisation’s capability to meet the market’s evolving requirements (Abell, 1978)
An organisation’s capabilities have been defined as its ‘distinctive competencies to do something well and efficiently’ (Dibb et al., 2016, p. 48)
Four main types of changes in a market:
change resulting from new needs in a marketplace (for example, the need to be able to digitally scan documents rather than just photocopy them)
change that redefines a market owing to changes in a product or in competitors’ product market strategies (for example, music-sharing websites)
change prompted from the development of new technology (for example, the advent of mobile phones)
change in a channel (for example, online retailing).
strategic windows may be created by changes in legislation and regulation and dramatic changes in the financial or political situation (Alderson, 1965).
Four strategic options organisations might adopt to respond to marketplace changes Abell (1978)
scale back future investment in the affected marketplace and extract whatever short-term profit is available
transfer focus to market segments with a better fit between requirements and the organisation’s capabilities
Try to gather the necessary resources to address the gap between market requirements and the organisation’s capability to meet them
Exit the affected marketplace.
SWOT Analysis: Taking advantage of strategic windows involves matching an organisation’s strengths to available opportunities. To do this requires an internal analysis of an organisation’s strengths and weaknesses and an external search for opportunities and threats.
Conducting a SWOT analysis can help in identifying strategic windows.