| Definition |
Market migration seeks to grow the market value of a firm by migrating its business designs (the processes a company employs to target customers, define the scope of activities, design products, produce and deliver its offering) away from approaches that are losing market value and toward those that are gaining. This framework helps managers to:
- Discern and evaluate changing competitive strategies
- Assess the relative strengths and weaknesses of alternative business designs
- Learn how to modify obsolete business designs to better satisfy customer needs and capture a disproportionate share of the industrys market value
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| Implementation |
To ensure that their businesses capitalise on industry trends, managers should:
- Chart the market values and profits of all industry participants (direct and indirect competitors) over time
- Investigate the business designs of companies that are gaining or losing significant market value
- Analyse how changes in customer priorities are driving changes in their purchasing behaviours
- Understand how alternative business designs affect a companys ability to satisfy customer needs
- Determine where future profits will be made
- Develop and implement business designs that will create the greatest utility for customers and the highest profitability for the company
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| Purpose |
Market Migration Analysis can help managers to:
- Objectively face the realities of industry evolutions
- Focus on the priorities that actually drive customer purchases
- Understand the linkages between business designs and the satisfaction of customer needs
- Recognise and communicate the need for new business designs
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