Strategic wear-out - Marketing Strategy

The adage ‘nothing lasts for ever’ is certainly true of marketing strategy. Care must be taken to avoid strategic wear-out. This occurs when the organization no longer meets customer needs and the pursued strategy is surpassed by competitors. Davidson (1997) summarizes the causes of strategic wear-out as follows:

  1. Changes in customer requirements.
  2. Changes in distribution systems.
  3. Innovation by competitors.
  4. Poor control of company costs.
  5. Lack of consistent investment.
  6. Ill-advised changes in successful strategy.

Future business requires active steps to ensure that the organization’s strategy does not ‘wear out’ and the role of strategy formulation is to develop/maintain a marketing orientation. This is based on the premise of defining customer need and prospering through customer satisfaction and loyalty. Sound general and financial management should underpin this orientation and the entire corporate focus should relate to the key asset of any business – customers.

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