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Market-driven versus driving markets
The purpose of thie article is to discuss two approaches to being market oriented-a market-driven approach and a driving-markets approach. Market driven refers to a business orientation that is based on understanding and reacting to the preferences and behaviours of players within a given market structure. Driving markets, on the other hand, implies influencing the structure of the market and/or the behaviour(s) of market players in a direction that enhances the competitive position of the business. There are three genereic ways of changing the structure of a market: 1. eliminating players in a market(deconstruction appropach), 2.building a new or modified set of players in a market (consturction approach), and 3.changing the functions performed by players (functional modification approach). Market behaviour can be modified directly or, alternatively, indirectly by changing the mind-set of market players.
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