Production orientation follows the idea that any product of high quality can be readily sold. The progression from production-oriented organizations to marketing-oriented organizations was powered by a shift toward a industry that catered to meeting customer desires and needs rather than purely delivering product features and efficiency. In today’s business world, it can be argued that customer wishes, concerns, and opinions, rather than industry profits, are the driving push behind many strategic business decisions. However, until the 1950s, organizations relied on the assumption that their businesses would be profitable so long as they produced high quality products which were durable and worked well.
This business model – also called production orientation – soon became outdated as industry turned into an increasingly crowded and global one. In the decades since its introduction, marketing orientation has been the model of choice for brands looking to sell products that contend effectively for consumer attention and brand commitment. During the Industrial Age of the 18th and 19th generations, production-oriented companies thrived credited to both scarcity and popular for mass-produced, high quality services and goods. Industrial firms focused on production orientation models that exploited economies of scale to attain maximum efficiency at the lowest cost.
Economies of level posits that by driving efficiency, companies (particularly production-oriented organizations) will realize significant cost advantages as they broaden operations. For example, companies that concentrate on increasing economies of range will dsicover reductions in device cost as how big is facilities and the utilization degrees of other inputs increase. … Read the rest