The firm’s and its customers’ views on order‐winning criteria

Abstract

A firm’s ability to win orders on the market depends on its competitiveness. A competitive firm wins orders on the market, which has a positive impact on its sales performance. Order‐winning criteria are those criteria that make a difference to the customer when he decides between qualified offered products. The selling and the buying actors may have the same or different ideas about what constitute these order winners, and they may also differ in their evaluation of the competitive strengths of a firm. Analyses the selling and buying actors’ perceptions of order winners and competitive strengths as the degree of fit between these perceptions. A good fit means that the two actors agree on order‐winning criteria and the firm’s competitive strength on these criteria. It is expected that a good fit relates to a positive sales growth of the selling firm’s product. Analyses different situations of fit and misfit for the ten product families of four small manufacturing Swedish firms, and shows how these situations relate to the sales patterns of the product families. The results reveal that a good fit is related to a stable economic development of sales, while two different situations of misfit may lead to a decline in or an expansion of sales.

Citation

Åke Hörte, S. and Ylinenpää, H. (1997), "The firm’s and its customers’ views on order‐winning criteria", International Journal of Operations & Production Management, Vol. 17 No. 10, pp. 1006-1019. https://doi.org/10.1108/01443579710177013