The article The effects of customer and competitor orientations on performance in global markets is written by Zhou, Brown, Dev, and Agarwal (2007), and it dwells upon an effective management model in the global hospitality market. The researchers consider two approaches, customer and competitor orientation of companies. Zhou et al. (2007) note that businesses operating in better-developed markets have to focus on customers’ needs as these countries have more resources and more demanding customers. At the same time, businesses operating in economically developing markets should exploit competitor orientation due to resource scarcity and unfavorable business conditions.
The use of one of these approaches shapes the financial management of the company. Thus, in more developed markets, businesses have to invest more in developing a wide range of services for customers to meet their needs. However, in less developed markets, it is important to finance specific areas in accordance with the market’s characteristics. For instance, in some markets, there is a lack of highly professional staff, and the company has to invest more in this sphere (Zhou et al., 2007).
The article provides valuable insights into financial management in the global market, and it unveils effective approaches to develop a business. Thus, it becomes clear that in less developed markets, it is ineffective to try to develop a variety of services to meet the needs of demanding customers as it is more effective to provide services or to have characteristics that other competitors do not have. This will increase the competitiveness of the company. It is important to have in mind this understanding since lots of companies make the same mistake and try to adopt a customer-oriented approach even though they operate in a less developed market, which requires investment into particular spheres of business.
Reference List
Sharma, S. (2010). The impact of the adoption of international financial reporting standards on the legal profession. Houston Business and Tax Journal, 38(1), 303-319. Web.
Zhou, K.Z., Brown, J.R., Dev, C.S., & Agarwal, S. (2007). The effects of customer and competitor orientations on performance in global markets: A contingency analysis. Journal of International Business Studies, 38(1), 303-319. Web.