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By | Feb. 2011
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Prospectors evaluate performance in terms of effectiveness. They emphasize measures such as new product success, percentage of revenues derived from new products or new customers, market development, and sales or market share growth. Prospectors have also been found to be oriented toward marketing, which implies an emphasis on customer satisfaction/ retention and product quality/image. * Firms categorized as Prospectors are pioneers that attempt to be the first to market with innovative new products or services, or of the first to enter emerging markets or market segments. Prospectors tend to adopt a proactive stance to their competitive environment They compete by bringing new and innovative solutions to those customers who perceive value in having early access.

Good examples of prospector: Google and Apple;

* Typically, Analyzers are fast followers that quickly follow Prospectors into successful new market segments with improved products or services, or with lower prices. These firms compete by rapidly improving on the Prospector's value proposition through features, price, or a combination of the two.

Analyzer without innovation: Dell;

Low-Cost Defenders typically differentiate themselves by offering relatively standardized products of good quality at lowest possible prices in relatively mature markets. They generally focus on internal efficiency to lower the cost of their existing supply chain practices. Low-cost defenders attempt to maintain a stable base of customers and products by competing primarily on price, supported by their focus on efficient operations. The development of efficient operations is guided by the internal business perspective, which comprises indicators such as time from order to delivery, percentage of on-time deliveries, and stock-out percentage rate. Efficiency is also stimulated by a financial orientation. Two drivers of low cost are experience effects and economies of scale. Cost reductions through cumulative...

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