Sibanda, Khutula and Erwee, Ronel and Ng, Eric Official URL: http://dx.doi.org/10.1080/08911762.2011.545722 AbstractThis study explored factors that distinguish pro-active versus reactive export marketing strategies of Zimbabwean export companies. It identified key variables that contributed most to the discrimination between pro-active firms with high levels of adaptation of export marketing strategy against reactive exporters with low levels of adaptation of export marketing strategy. Data was collected through a structured multi-item questionnaire involving a randomly selected sample of 105 exporting organizations. The overseas experience of management and strategic orientation of the company, cultural values and legislation were found as key variables that discriminated between reactive exporting firms using low adaptation of export marketing strategy from those pro-active exporters with high adaptations.
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Reactive business strategies are those that respond to some unanticipated event only after it occurs, while proactive strategies are designed to anticipate possible challenges. Because no one can anticipate every possibility, no organization can be proactive in every situation. However, businesses that emphasize proactive strategy are usually more effective at dealing with challenges.
The distinction between proactive and reactive approaches is a recognized principle of military strategy, often expressed in the phrase "seize, retain and exploit the initiative." Proactive strategies are superior because they allow the company using the strategy the freedom to make its own decisions rather than responding out of necessity to a situation that already may be out of control. Companies that use proactive strategies have a better chance of seizing and retaining the initiative in the competition with other companies.
The difference between applying a proactive strategy and a reactive strategy is largely one of preparation and accountability. For instance, if a potential customer asks a roofing contractor for references, the roofer can react by going through his list of past customers and calling them one by one to find out if they'd be willing to provide a reference.
A better strategy would be to assign one employee to maintain a database of satisfied customers who already indicated their willingness to do so. In a competition between a contractor with a reactive reference strategy and one with a proactive reference strategy, the one who can provide high-quality references rapidly will enjoy a clear advantage in bidding for the job.
Another example of the difference between proactive and reactive strategies is in the area of quality control. If a hotel manager assumes everything is fine until she receives a customer complaint, she is using a reactive strategy. The weakness of this approach is that many dissatisfied customers do not complain to management; they simply go elsewhere next time and advise others to do the same. A proactive strategy could include making careful hiring decisions, fostering a customer service culture among the staff, checking with guests during their stay to ensure their needs are being met and any other actions likely to prevent customer dissatisfaction.
Because no business can always be proactive, it helps to include proactive elements in any reactive strategy. In classic strategic doctrine, this is referred to as including offensive elements on defense. Responding to customer complaints generally is considered a reactive strategy. However, if a business such as a pizza delivery restaurant includes a note on every box encouraging dissatisfied customers to call for a free pie, the company can avert potential harm and may receive good word of mouth as well. PhysioEx Exercise 7 Activity 2.pdf Lab4- Seperation of Benzoic Acid, 3-Nitroaniline, and Naphthalene.docx wparker.Project3FinalReport.docx CHAPTER5-ASSIGNMENT-BSA31.docx The Importance of Market Research final.doc Lab 4 Working with EBS Worksheet SJS.docx Physics 1 Lab Report 4.docx Animated Progress Bar.docx 551 MG 74 Taxation Unit 1.docx |
Why do so many firms take a reactive approach to exporting rather than a proactive approach?
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