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Lookup NU author(s): Professor Raffaele Filieri
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).
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 marketdriving orientations, no study has analysed how companies move from a market-driving to a marketdriven 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.
Author(s): Filieri R
Publication type: Article
Publication status: Published
Journal: Marketing Intelligence & Planning
Acceptance date: 09/04/2014
Date deposited: 22/08/2016
ISSN (print): 0263-4503
ISSN (electronic): 1758-8049
Publisher: Emerald Group Publishing Limited
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