Operations Strategy/What is operations strategy?/Understanding the market

Market requirements and operations strategy

Figure: Throughout this section, we will look how market requirements help influence the operations' overall strategy

From what we've studied in the previous sections, we have come to establish a fact that operations, of whatever kind, are influenced by two major factors, the resources for the operations and the market requirements.

Authors like Slack call the market perspective on the operation strategy as 'outside-in' where the outside influence tends to tailor the overall strategy of the operations from within.

If one is tempted to tailor needs in the operations to match a certain market's requirements, they need to study the market first in order to match the company's marketing efforts. Such decisiveness is called market segmentation.