Does strategy matter for an enterprise market performance? A theoretical review of marketing strategies and industry life cycle (ILC)

Abstract

Does marketing strategy matter for enterprise behaviour and, ultimately, for its market performance? Should firm adopt exit strategies in the declining stage of the industry life cycle?. This conceptual study paper seeks to provide an answer for these questions. Different strategy dimensions of marketing strategy have been discussed as well as consequences of a good or bad marketing strategy on enterprise performance. As first result from the different marketing strategy typologies reviewed, the study confirms that marketing strategy predict market performance outcomes for an enterprise. Marketing strategies form a strong foundation for enterprise superior performance in multidimensional ways. As second result, the study argues that enterprises can adopt growth strategies in the declining stage of the industry life cycle. It shows which marketing strategies are appropriate at different industry life cycle stages. As third result, the study unveils that marketing strategies differ from country to country, region to region and from organisation to organisation. Undoubtedly the consequences of customer centric marketing philosophy will be felt by the customers, through general enterprise innovativeness by its employees. This study identifies a theoretical knowledge gap in application of industry life cycle concept in business strategy formulation which other future researchers can fill by carrying out an empirical study as a continuation of this theoretical work.