Brandname: German Tops
Company Name: Mutual Prosper Co Ltd
Management Function Analysis

The company is characterized by its "Market Driving" approach in developing and marketing its products.

Marketing can be considered as the act of creating change and disequilibrium in markets such that the change would benefit the company (or an alliance of companies), but it would disadvantage their competitors. It is not enough for companies to passively respond to changing environments by looking for the best fit between the existing resources and market niches. To achieve a superior business performance, companies need to actively influence the market rather than being only reactive to it (i.e., be capable of driving markets).

As illustrated by this company, market-driving companies are better able to gain a sustainable competitive advantage by proposing offerings more valued by consumers than their competitors. In fact, there are different ways to drive a market; market behaviors can be shaped directly (by either building or removing customer or competitors' constraints) or indirectly (by creating or reversing new customers or competitors preferences). The present case illustrates the direct shaping of the market behaviors.

Implications for SMEs
SMEs should bear in mind the dynamics of market competition and the modern development of marketing strategy which tends to move away from market-driven approach to market-driving approach. With the limited resources available for SMEs, they may be able to follow strictly the market-driving strategy in a big way, however, awareness of this trend would help SMEs to formulate their long term plan.