Design Organisation


Operating models
Market-based

 

A variation of organising by product where sets of customers are defined with similar characteristics and needs.

Organisations are structured to support each customer segment with fully-integrated unit(s).


Market based




Advantages

  • Increases market knowledge across the organisation   -Increases customer-focus
  • Creates capability to respond quickly to markets
  • Creates one-stop shopping for customers interested in a “family” of related products and services
  • Enriches jobs and individual responsibilities
  • Increases ability to forecast and track customer retention and/or satisfaction
 

Disadvantages

  • Creates duplication of some business activities
  • Creates more cost



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