Page 1 of 14
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e‐ISSN: 2395‐0463
Volume 02 Issue 01
January 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ Page | 200
Which Business Typology is Most Market Oriented (MO)
(Comparative analysis of prior studies)
Abdul Waheed[1]*, Sher Zaman Khan[2], Muhammad Shahid[3], Muhammad Farrukh Iqbal[4] [1]Donglinks School of Economics and Management, USTB China [2]Gomal University, DI Khan‐Pakistan
[3]University of Science and Technology Beijing, China
[4] Segi University, Malashia
abdulwaheed168@gmail.com
Abstract
Core objective of this paper is to identify the
relationship among important business
typologies and MO (Market Orientation). It is
identified after extensive literature review, the
business typology of Miles & Snow (defenders,
prospectors, analyzers & reactors) is most
market oriented as compare to other business
typologies such as Abell’s typology
(differentiated, undifferentiated and focus
strategy) and Porter’s typology of three generic
strategies such as cost leadership,
differentiation and focus strategy. Further, It is
identified, typology of Miles & Snow also not
entirely able to be market oriented except
adoption of certain outcomes of market
orientation that have significance relationship.
But comparatively, Miles & Snow business
typology is more market oriented than others
business typologies. This research paper is
based on extensive literature review.
Key words: Market Orientation (MO), Business
typologies, Business Strategy
1‐ INTRODUCTION
The concept of Market orientation is
very important and every organization need
to be market oriented to gain competitive
advantages over time (Abell, 1980).
Different researchers have identified various
factors which lead organizations to be more
competitive. According to researcher,
Increased power of buyers in competitive
markets forces firms to get closer of buyers
in order to sustain their business and to
create value adding solution for capturing
more revenue from buyer’s base (Galbraith,
2002; Whiteley, 1993). It is very necessary
to capture the customer’s attention towards
the organization to gain the competitive
advantages and for that reason a firm is need
to adopt such a business strategy that may be
implemented successfully to achieve all
desire objectives of the organizations.
According to Porter, there are different
business strategy typologies such as Porter’s
business typology based on certain strategies
such as; cost leadership, strategy,
differentiation strategy and focus strategy
whereas Abell’s business typology based on
; differentiated, undifferentiated and focus
strategy (Abell, 1980) and Miles & Snow
business strategy typology represented and
describe itself as ;Prospector-Analyzer- Defender-Reactor (Miles, Snow, Meyer, &
Page 2 of 14
Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e‐ISSN: 2395‐0463
Volume 02 Issue 01
January 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ Page | 201
Coleman, 1978) etc. Further according to
another researcher, product oriented, product
focused strategy can be seen as internally
focused company’s strategy that pursuits
competitive advantage by delivering cutting
edge products with the best product features
based on core competences (Galbraith,
2002).
Further, typology that is presented by
Miles & Snow (Miles, et al., 1978) is
categorized into four distinct types;
prospectors, defenders, analyzers & reactors.
Prospector is defined as a firm which faces
problem of entrepreneurial in locating new
product & market opportunities. Prospector
type of firms thrives in changing business
environments that have an element of
unpredictability, and succeed by constantly
examining the market in a quest for new
opportunities. Prospector firm has broad
product and service lines also promote
creativity over efficiency. Secondly,
Defender Firm faces entrepreneurial
problem that how to maintain a stable share
of the market, hence their function is best in
the stable environment. Thirdly, analyser
firms are those firms which share
characteristics with prospector and defender
organizations as well as the reactor firms are
those that do not have systemic strategy,
structure or design and these firms also not
prepared for changes.
Market orientation is further defined in
different, according to another researcher
market orientation is actually the
implementation of the concept of marketing
(Kohli & Jaworski, 1990). Marketed
orientated firms focus to identify & meet the
hidden needs & wants of extensive
customers. Market orientation is also
defined as the generation & distribution of
market intelligence which is composed of
information about the customer’s current
and future needs and exogenous factors that
influence those needs (Kohli & Jaworski,
1990).Market orientation concept is
emerging concept which studied and defined
by various schools of thought such as;
(Becker, 1999; Deshpand, Farley, &
Webster Jr, 1993; Kohli & Jaworski, 1990;
Narver & Slater, 1990; Ruekert, 1992;
Shapiro, 1988; Slater & Narver, 1994).
1.2‐ Research Objectives & Research
Questions
The basic objective to conduct this
research is to explore the relationship among
different important business typologies that
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Journal for Studies in Management and Planning
Available at http://edupediapublications.org/journals/index.php/JSMaP/
e‐ISSN: 2395‐0463
Volume 02 Issue 01
January 2016
Available online: http://edupediapublications.org/journals/index.php/JSMaP/ Page | 202
are more effective for an organizations to be
market oriented. By doing so this research
intends to answer the following questions;
1. What is the relationship between
business typology and market
orientation?
2. Which business typology is more
market oriented than others?
2‐ LITERATURE REVIEW
2.1‐ Business Strategy, Typologies & the
concept of MO (Market Orientation)
According to different research the concept
of MO have great importance for the
organizations and it is damn necessary for
any organization to be market orientated to
competitive in competitive environment and
different schools of thought have shown the
importance of marketing orientation such as
importantly; (Narver & Slater, 1990) as well
as (Kohli & Jaworski, 1990) etc. To get the
answer of proposed research question,
different business typologies are studied in
which tried to understand the relationship
among business typologies.
2.2.1‐ Business Strategy
It is not easy to get universal
accepted definition of business strategy
because no one have defined and presented
comprehensive definition of business
strategy. According to different researchers
this business strategy is defined in different
& own ways. Strategy is also defined as
corporate level strategy and business level
strategy (Hofer & Schendel, 1978) It is
defined as decision rules & guidelines that
are required by a firm for profitably growth
(Ansoff, 1987). The strategy of corporate
level focus on selection set of business &
recourses deployment between them
whereas business level strategy deal with
question; how to compete in a particular
industry (Hofer & Schendel, 1978).
Business strategy is related that how an
organization can achieve advantage over a
competitors (Johnson, Scholes, &
Whittington, 2008). Further,
business strategy is typically a document
that articulates direction towards
a business to pursue and provide certain step
to achieve the specific organizational goals.
2.2.2‐ The concept of market orientation
(MO)
Market orientation is defined by
different researcher in their own view such
as according to (Kohli & Jaworski, 1990),
market orientation is the complete
implementation of the marketing concept.
