From market-driving to market-driven: An analysis of Benetton's strategy change and its implications for long-term performance. Issue 3 (5th May 2015)

• Record Type: Journal Article
• Authors: Filieri, Raffaele
• Is Part Of: Marketing intelligence & planning. Volume 33:Issue 3(2015)
• Page Start: 238
• Page End: 257
• Publication Date: 2015-05-05
• Subjects: Organizational change -- Benetton Group -- Fashion industry -- Market-driven orientation -- Market-driving orientation; 658.83
• DOI: 10.1108/MIP-02-2014-0037
• Languages: English
• ISSNs: 0263-4503

Abstract

Abstract : Purpose: – The purpose of this paper is to extend the literature on market-driven and market-driving management and analyzes the Benetton's market orientation change from a market-driving to a market-driven orientation. Additionally, this study uses longitudinal data to measure the degree of success of the market-driven orientation. Design/methodology/approach: – The study is based on a qualitative case study method and it discusses how Benetton has moved from a market-driving to a market-driven orientation. Findings: – The paper analyzes the principal transformations the Benetton Group has gone through to implement a market-driven orientation, including the delocalization of the manufacturing and of trusted suppliers; the downstream integration process; the adoption of a flexible, efficient and responsive logistics; the implementation of a modern information systems infrastructure. Revenues data show that the company has benefited of the new orientation, but only in the short-run. Moreover, the early adoption of the market-driven orientation by competing firms (e.g. Zara) and the economic environment seem to play an influence on the performance of market-driven companies. Research limitations/implications: – The single case study approach may limit the generalizability of the findings. However, this case study is unique and of high importance for managers in different industries. Originality/value: – Although some studies have discussed the benefits of market-driven and market-driving orientations, no study has analysed how companies move from a market-driving to a market-driven orientation. Additionally, existing studies have proved market orientation's influence on business performance using static measures. This study uses longitudinal data to show the effect of market-driven orientation on a company's long-term competitive advantage.