A Second Chance at Life? Analyzing Customer Value in the Medical Industry

ABSTRACT Purpose This case reviews how a specialist medical organization in Europe has been able to build sustained positive market value by simultaneously focusing on a market orientation as well as a resource orientation. Design/methodology/approach The case study draws on market orientation, the resource-based view and customer value theories and uses interviews, internal company documentation and secondary research. Findings The case provides an analysis of how an organization has adopted elements of market and customer strategies to survive in an intensely competitive knowledge-driven industry. Findings show that effective differentiation for medical equipment is required to increase client adoption levels and the likelihood of purchase (by medical specialists and patients). From the case, it is apparent that the success of specialist medical devices depends on attention to customer value, as well as product and service quality. These are each driven by facets of resource and market orientations. Originality/value This study provides support for emerging research which demonstrates that a dual focus on the resource composition of an organization, as well as the focus on the provision of customer value are able to drive innovation and financial performance. It shows that organizations cannot limit their focus on one strategic orientation to be successful.