Business Essay Example: The Reasons for the New Company Orientation

Restructuring the organization to a market-oriented perspective is essential in enhancing the organizational effectiveness. Market orientation refers to the philosophy where a company focuses on using its product mix to identify and meet the customer's needs and preferences. In the market orientation approach, companies conduct market research to identify the products that can easily sell. It is opposed to product orientation approach which focuses on product development to create innovative products with the hope that customers will purchase. Market orientation aims at answering various questions regarding production, sales, marketing, establishing relationships, and the societal concepts. In this case, adopting market research allows the company to identify how to sell more aggressively, how to meet the customer needs, how to attract new and maintain existing customers, and ways to benefit the society. For this reason, the new company orientation is beneficial as it allows the company to achieve higher customer satisfaction and thus administering a customer loyalty. Besides, as the company strives to meet the customer needs and preferences, it stands a chance to create value for the customers as they end up highly satisfied.

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The implementation of a market-oriented approach is advantageous to the company in various ways. For instance, it creates a competitive advantage as the company strives to meet the consumer needs and preferences and thus creates brand loyalty. In this case, there are minimal chances for the product to fail as the market research provides adequate information regarding the gaps existing in the market. For this reason, once the product is introduced to the market, there are higher chances that it will sell effectively. Also, a market orientation allows the company to collect frequent feedbacks from its customers. As a result, the company is aware of the possible changes in the market. The firm is thus at an advantage as it derives mechanisms to respond quickly to the foreseeable changes in the market. More importantly, a market orientation approach helps in delivering high customer satisfaction as it values the needs of its consumers. Moreover, through building relationships with the customers and creating value to the society, the company creates a strong position to compete with its competitors and other companies entering the market.

Nevertheless, the implementation of a market orientation approach creates some limitations to the company. For instance, the process can be expensive to administer and thus consume a significant amount of resources. Also, it can be difficult to meet the needs of each consumer in the market due to the frequent changes in the customer tastes and preferences. Furthermore, the current market is very turbulent, and thus it can be difficult to predict the future trends in the markets. Also, although customer feedbacks allow the company to get ready to respond to the unforeseeable changes, sometimes the company may not be flexible to adapt to the frequent changes as it is not only time consuming but also expensive.