ARTICLE SUMMARY

Summary of From Strategic Fit to Customer Fit

Santala Parvinen (2007 ) present the research done on taking the strategic fit concept and revising it into a more customer-based fit Strategic fit is based on the theory that organizations are interdependent with one another and also , in turn , interact with the environment . Because of these relationships , it is posited that matching a given firm 's strategy with its environment and partner organizations will increase performance

Recently , however , a different approach is recommended . Better performance is said to be attained when the firm

focuses more on the customer 's perception of the firm rather than on organizational structure . These conclusions were based on a theory and various literature that indicate a more empowered customer in the present times Understanding the limitations of the customer in perceiving the firm and its activities as well as accounting for the customer 's affective and contextual elements in forming a decision are considered some of the more salient points of the customer-fit argument . A customer analyzes the firm and its activities separately but acknowledges a relationship existing between both . This relationship is what the term customer fit refers to . With the use of customer fit , a given firm 's value proposal is easily analyzed and weighed

Establishing how customers analyze the firm 's proposal can aid managers in understanding transactions better . This is important especially because the manager 's and the customer 's views on a given proposal are inconsistent . The value assigned to a proposal...