Tension-3: Company versus Market
There is an unavoidable asymmetry and tension, almost paradoxical, between a company and its market.
The commercial paradox, balancing «concern for the company» with «concern for the market», emerges from the ethical tension between and approaches to ethical choice.
This tension is found in a variety of settings in slightly different forms:
In the present setting, a company needs markets they can enter, while customers need markets to give them choices amongst products from different companies. From the company's perspective, markets can be regarded as «an open and poorly defined community of companies» + «actual and potential customers» .
- Company choices that focus on the interests of the company are in nature for the company.
- Company choices that focus on the interests of the marketare in nature for the company.
When we examined the nature of choices made at each of the Stages, it was rapidly apparent that are all in slightly different styles, and are all in slightly different styles .
See it Laid Out
L1: sustain in the market.
L2: constrains in the market
L3: differentiates in the market.
L4: integrates in the market.
L5: Putting customer-relationships first sustains the market available to the company.
L6: Radical innovation constrains the market available to the company.
L7: Recognizing market potentials differentiates the market available to the company.
Because a market is a social good for both companies and customers, the community (via its government) should ensure the existence of laws (e.g. of contract, fair dealing, &c.) and regulatory authorities to protect market integrity.
- See how this duality generates two outlooks on profitability.
- Examine the other two tensions: top management control issues and influences on marketing choices.
Originally posted: July 2009