Strategic Windows

Strategic market planning involves Anticipating and Responding to changes which affect the marketplace See also Strategic Fit

Dynamic analysis

When changes in the market are only incremental firms may successfully adapt themselves by modifying current marketing. However market changes can be so far reaching that the competence of the firm to continue to compete effectively is called into question. In such a circumstance the concept of strategic windows is applicable

A strategic window focuses attention on the fact that 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 the market is at an optimum Disinvestment should be contemplated also

Frequent questions

Should funds be committed to a proposed new entry? Should expenditure of funds of plant and equipment or marketing to support existing product lines be expanded? When should a decision been made to quit?

It is unfortunate that the heightened interest in product portfolio analysis in the last decade has failed to adequately encompass these issues. Many managers routinely classify their various activities as “cows” “dogs” “stars” or “question marks” based on a static analysis of the current position

Of key interest is how well equipped is a company to deal with tomorrow

In most cases challenging market requirements have resulted in a closing strategic window for one company and an opening window for new entrants

Market evaluation

Four major categories standout

• 1. The development of new primary demand opportunities
• 2. The advent of new competing technologies
• 3. Market redefinition caused be changes in the definition of the product itself and of or changes in the product market strategies of competing firms
• 4. Channel changes

New Primary Demand

In some cases an original entrant plows new territory adjusting his approach to the emergent needs of the marketplace An example of being Emery Air Freight who were focused on servicing in the “emergency segment” but moved to the total cost concept market The T. C. C application required detailed logistics planning to assess the savings and benefits to be obtained via lower inventories. The decision to seek this kind of business thus implied core changes in Emery’s organization

New competing technologies

Texas instruments entry into a wide variety of consumer electronic products from it base of semiconductor manufacturer. Or another example of digital cameras. The nature of competition may also change dramatically as technology changes The advent of solid state electronics for example ushered in a number of small low overhead independent assemblers

Market redefinition

Fundamental definition of the market changes in ways which increasingly disqualify some competitors or providing opportunities for others Docutel illustrates the point Docutel made ATM’s but faced competition from large manufacturers who provided Electronic Funds Transfers Systems. This increasingly appeared to disqualify Docutel as a potential supplier

Channel changes

Changes in the channels of distribution. Few sectors of American in industry had changed as much as retail and wholesale distribution. Gillette contemplated entry into the blank tape market. Gillette skill in marketing low priced frequently purchased packaged goods along with distribution channel resources could be applied to marketing blank cassettes. Gillette decided against entry not because a strategic window did not exist but because profit prospects were not favorable

Problems and opportunities

Existing businesses Confronted with changes in the marketplace which potentially disqualify the firm from continued successful participation, several strategic options are available

• 1. Assemble resources needed to close the gap
• 2. The firm may shift its efforts to selected segments where the fit between requirements and resorts is it still acceptable
• 3. The firm a shift to a low profile; milking business for short term profit
• 4. The decision may be taken to exit from a particular market

All too frequently the strategic window is not clearly recognized or only half-hearted attempts are made to assemble the new resources

The four basic strategic choices outlined above may be viewed at hierarchy in terms of resource commitment

The following questions may be helpful

• 1. Careful analysis has to be made of the gap of which may emerge between the evolving requirements of the market and the firm’s profile
• 2. To what extent can the changes be anticipated?
• 3. How rapid are the changes which are taking place?
• 4. How long will realignment of the fundamental activities of the firm take
• 5. What current commitments, distribution channels constrain adaptation?
• 6. Can new resources and new approaches be developed internally or must they be acquired?
• 7. Will the change be complete or will there be a chance of coexistence
• 8. Are there segments of the market where the firm’s existing resources can be effectively concentrated?
• 9. How large is a firm stake in the business?
• 10. Will corporate management be willing to accept different goals?

New entrants

Careful assessment of the firm’s strength and weaknesses Attention should be directed away from narrow focus of familiar products. This requires a broader appreciation of overall environmental, technical and market forces

Conclusion

The strategic window suggest that fundamental changes are needed in marketing management practice. And particular in strategic market planning activities. Entry and exit from markets is likely to occur with greater rapidity. This article suggests that as far as anyone firm is concerned, a market also is a temporary vehicle for growth, a vehicle we should develop or abandon as the circumstances dictate.

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