Marketing Strategy and Competitive Positioning pdf ebook

Figure 18.2
Increasing 
customer demands
Higher
standards of
reliability
and
durability
At ever
lower
prices

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FUNDAMENTALS OF STRATEGY IN A CHANGING WORLD
18.1.3 Organisational change 
While ‘downsizing’ is still very much a part of the commercial landscape and lexicon, many 
firms have come to terms with the notion that there is only so much ‘fat’ that can be removed 
before you damage the muscle, and too much aggressive slimming can lead to anorexia 
industrialis (the excessive desire to be leaner and fitter, leading to total emaciation and 
eventual death). The impact on organisational structures has been far broader, and this is 
manifest in two main directions: first, there is the impact within the firm; second, there is 
the impact on inter-firm relations. 
Within firms, boundaries between functional areas are becoming more blurred. Where 
firms were once organised with clear-cut divisions between marketing, finance and opera-
tions, it is now recognised that ‘functional silos’ can result in myopic operations and sub-
optimal strategies. Although it would be misleading to suggest that all firms have tackled 
this issue successfully, in market-leading firms, functional boundaries are softened and 
replaced, or augmented by process teams that view the operations of the organisation in 
broad/holistic terms and are not hampered by petty rivalries between functions. This is 
representative of a more result/outcome-based organisational logic, as opposed to a more 
traditional inward-looking, structurally convenient approach. 
At the same time, the role of marketing in organisations is being challenged. Market-
ing departments can get in the way of serving customers for two main reasons. The first is 
territorial, and connects with the traditional approach mentioned earlier. Marketers might 
see dealing with customers as their ‘preserve’, and wish to retain the power and influence 
that goes with that connection. Second, however, is that the very presence of a market-
ing department or team may encourage others in an organisation to offload responsibility 
to them for customer building, retention and overall customer experience. This creates a 
dangerous norm or perception that ‘others’ (those not designated as marketing people) 
should not concern themselves with customers, or issues relating to customer experience, 
as someone else will take care of it. One view is that the days of traditional marketing are 
over, and the challenge is to design and implement better ways of managing the process of 
going to market – a process that is likely to cut across traditional functional boundaries, as 
well as external boundaries with partners. 
The boundaries between firms and their suppliers are also increasingly blurred. Bounda-
ries with suppliers, distributors and customers are changing as more businesses understand 
the need to manage the entire value chain, from raw materials through to customers, and to 
work more closely with partner firms to achieve added value throughout the chain. 
Successful strategy initiatives may increasingly rely on finding ways around a lack of 
responsiveness and slow movement of traditional functional bureaucracies. Organisa-
tions that fail to address these important issue may not survive – there is a compelling 
need for change! 
In fact, these changes require businesses to reassess their strategy in general, and market-
ing strategy in particular. The strategies that will be successful in the future will need to 
create organisations that are responsive and adaptable, rather than those that are rigid and 
fixed. The key will be in creating an organisational context where learning can take place, 
market changes can be identified and capabilities can be fashioned to ensure a strategic fit 
between market and the firm. In short, the development of organisations that are dynamic, 
flexible and adaptable will become more critical.
18.2 
Fundamentals of strategy in a changing world 
Figure 18.3 illustrates a number of factors that are important for organisations competing 
in complex and changing markets.

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