One of the easiest things to do in market strategy is write a list of market trends. One of the hardest things to do well in market strategy is to select and to articulate just those key market trends, changes, that are or will impact your business strategy now and in the future.
Identifying relevant change is a sea of noise, is a key skill for strategy leaders and for product management.
Underpinning the ability of your organization to understand and react to market changes, is your ability to understand your external environment. “Scanning” is the term given to this ‘information search’. Which trends are most critical to your business depends on your vision and how you decided to react to changes in the market, competitor and customer needs.
searching ~ collecting ~ learning ~ interpreting ~ deciding ~ integrating
Be inspired to strengthen your executive scanning ability using this set of definitions compiled by Dimotakis et al (2019). Be aware that some changes will float by harmlessly and others have the potential to bump you out of the sky.
Then consider the 5W1H of how scanning for market trends works, or could work, in your organization.
|Authors||Definitions of Executive Scanning|
|Aguilar (1967)||“Activity of acquiring information about events and relationships in a company’s outside environment, the knowledge of which would assist top management in its task of charting the company’s future course of action.” (p. 1)|
|Hambrick (1981)||“Scanning – the process of learning about events and trends in the organization’s environment.” (p. 256)|
|Etzioni (1986)||“The term scanning is used to refer to search, collection, processing, and evaluation of information as well as to the drawing of conclusions, all elements in the service of decision making.” (p. 8)|
|Daft and Weick (1984)||“Scanning is defined as the process of monitoring the environment and providing the environmental data to managers. Scanning is about data collection.” (p. 286)|
|Cowan (1986)||“Scanning allows for the input of new information which alters one’s conception of reality.” (p. 770)|
|Ghoshal (1988)||“Environmental scanning is the activity by which organizations collect information about their environments.” (p. 69)|
|Thomas, Clark and Gioia (1993)||“Scanning involves information gathering; it usually is considered an antecedent to interpretation and action.” (p. 240)|
|Danneels (2008)||“Environmental scanning refers to the extent to which organization members devote their efforts to learning about events and trends in their organization’s environment.” (p. 524)|
|Kor and Mesko (2013)||“Managers utilize environmental scanning to identify new trends and opportunities, and integrate new ideas and knowledge with the firm’s existing capabilities, which is instrumental.” (p. 233)|
Further Resources on Market Strategy
- Use this Framework For Market Opportunity & Analysis
- Explore further How CEOs’ scanning behaviors influence SME innovation and performance by Dimotakis, Nag, & Neville (2019) in the Journal of Small Business Management
- Go further by choosing from the selection of topics tagged below