The Market and Nonmarket Strategies (Essay Sample)

Name:
Course:
Tutor:
Date:
Market and Nonmarket Strategies
Business organizations operate in a highly volatile environment characterized by competition and uncertainties. For this reason, it is very important that managers of such organizations take adequate time to plan, devise and implement practical strategies that enhance firm performance and sustainability. Among different types of business strategies, market as well as non-market strategies are popularly used to keep stakeholders satisfied while also improving organizational profitability. In this paper, the difference between these two strategy types will be discussed and an exposition of the significance of non-market strategies provided.
Market strategies are the strategies or action steps taken by a company with the primary motive of increasing profits or attracting more customers. When a company is seeking to improve its competitive advantage and operate sustainably within a given industry, it will most likely employ market strategies by reviewing or improving its product lines as well as investing more innovative solutions (De et al.3). In simple words, a market strategy is one whose focus is on positioning as well as market choice, after which firms will be keen to ensure that the needs of customers in specific markets are fulfilled adequately.
Non-market strategies, on the other hand, are those that are designed with the aim of establishing and maintaining positive relationships between a company and external stakeholders, namely the government and the society. It is a well-known fact that business success is not determined by customers, suppliers, competitors, and employees alone; external agencies such as government, media, and society equally have an impact. It is worth noting that much as business transactions essentially take place within the market environment, non-market environment actors affect viability and success. Structures and standards set by the government as well as the society act as either threats or opportunities (Lussier & Sherman 21). This is to say that non-market actors are very crucial to a firm’s success because the firms position within a given market, together with its success are significantly influenced by these actors.
Having distinguished market strategies from non-market strategies, it is important to outline the significance of non-market strategies to firms. Going by the fact that it is the non-market environment that creates threats and opportunities, it follows that carefully-formulated non-market strategies will help an orga