Proactive companies : how to anticipate market changes

Why do some companies succeed better than others? It is well known that there are many variables such which may impact a company's performance. The authors present their new model for Market Proactiveness which shows organizations how to anticipate change and respond to it before they are forced to do so, and improve their overall performance.

Author Notes

LEONARDO ARAUJO Professor of Marketing at Fundação Dom Cabral (FDC), teaching both MBA programs but also short courses for executives of large national and multinational companies. He was Manager of Marketing at the FDC from 2003 to 2005 and is a member of the FDC Innovation Centre.
ROGERIO GAVA Professor and consultant in marketing and strategy at FDC as well as a Visiting Professor teaching strategic marketing programs at the Federal University of Rio Grande do Sul (UFRGS), coordinator of the administration of the Centre for Higher Education Ragamuffin (CESFRS) and Director of Gava & Gava Integrated Business Consulting, since 1998, providing training and consulting in the areas of marketing, strategy and finance, serving clients in various regions of the country.

List of figures and tables	p. xi
Acknowledgments	p. xiii
Preface	p. xv
Introduction: A model for market proactiveness	p. 1
Our approach to market proactiveness	p. 2
A word about this book	p. 5
Part I Understanding Market Proactiveness	p. 7
1 Market Proactiveness: Anticipating Moments Zero	p. 9
Market reactiveness: the company reacts to the environment	p. 10
Why are companies reactive?	p. 11
The sources of market reactiveness	p. 12
Strategy reactiveness	p. 12
Marketing reactiveness	p. 13
Innovation reactiveness	p. 14
Market reactiveness is not enough any more	p. 14
Anticipation: the essential element of market proactiveness	p. 15
Moment zero	p. 16
The two types of anticipation	p. 17
Companies and the moment zero	p. 18
The proactive company	p. 21
2 Action Tools and Models: The DNA Of Market Proactiveness	p. 23
The DNA model	p. 24
Dimensions of market proactiveness	p. 25
Why three dimensions?	p. 26
Levels of market proactiveness	p. 27
Market proactiveness actions	p. 27
Proactiveness actions concerned with the organization's offer	p. 29
Proactive actions concerned with the industry	p. 31
Proactive actions on customers	p. 35
The moment zero matrix	p. 37
Part II Managing Market Proachveness	p. 41
3 Organizing The Company For Market Proactiveness: The Capacities Of A Proactive Company	p. 43
The capacities of a proactive company	p. 44
Market proactiveness management	p. 46
The four dimensions of proactive management	p. 48
The diagnosis of capacities	p. 50
4 Future-Today Management: Believing In What Does Not Exist (Yet)	p. 51
Visualizing future realiities	p. 52
Tracking the undetermined reality	p. 53
Exploring the uncertain reality	p. 57
Building images of the future	p. 58
The construction process	p. 60
Defining instigating questions	p. 61
Mapping influential factors	p. 62
Identifying critical uncertainties	p. 65
Designing images of the future	p. 66
Generating potential moments zero	p. 67
Managing short-term pressure	p. 70
Equipoise: the management balance	p. 71
Create a long-term culture	p. 76
Long-term indicators	p. 77
Long-term incentives	p. 78
5 Uncertainty Management: Learning To Deal With Risk And Error	p. 81
Dealing with risk	p. 81
Overcome the security fallacy	p. 82
Learning about risk	p. 85
Dealing with error	p. 86
Eliminate the boundary between success and failure	p. 87
Practice having the freedom to make mistakes	p. 88
6 Proactive Innovation Management: Innovating To Change The Market	p. 92
Innovating proactively	p. 93
Focus on radical innovation	p. 93
Do not make innovation subordinate to the market	p. 97
Flexible management	p. 101
Overcome the "control versus empowerment" dilemma	p. 103
Overcome the "competition versus cooperation" dilemma	p. 105
7 Proactive Behavior Management: Developing Personal Proacttveness
The capacity for leading proactively	p. 107
Lead proactively	p. 108
Encourage a proactive way of acting	p. 110
The capacity for identifying and developing proactive people	p. 112
Identifying personal proactiveness	p. 114
Developing personal proactiveness	p. 116
Part III Executing Market Proactiveness	p. 119
8 Building A Proactive Market Strategy: How To Put Market Proacttveness Into Practice	p. 121
The four steps of a PMS	p. 124
Map realities and market moments zero	p. 124
Analyze proactive actions on each level	p. 124
Pick promising alternatives	p. 125
Evaluate the feasibility of the strategy	p. 126
9 Offer Proacttveness: Creating A Moment Zero For An Offering	p. 129
The standard offer and complementary offer: synergies and opportunities	p. 130
Responsive anticipation and creative anticipation in the offer dimension	p. 132
Responsive anticipation	p. 133
Creative anticipation	p. 135
How did Fiat anticipate a change in offer, in introducing its new light-off-road car concept to the Brazilian market?	p. 137
Interpreting the environment and detecting signs	p. 138
Developing the new off-road-light concept	p. 139
Sustaining the proactive market strategy	p. 140
The competition's reactiveness	p. 141
Using capacities to anticipate change	p. 142
Reaping the fruits of anticipation	p. 144
10 Industry Proactiveness: Creating Moments Zero In Competitive Environments	p. 145
Responsive anticipation and creative anticipation in the industry dimension	p. 150
Responsive anticipation	p. 150
Creative anticipation	p. 155
How industry proactiveness boosted the growth and profitability of Localiza Rent a Car	p. 157
Analyzing growth alternatives	p. 158
Advancing into the car sales chain	p. 160
Using capacities to create changes	p. 163
Leveraging business profitability	p. 163
11 Customer Proactiveness: Creating Moments Zero In Customer Behavior	p. 164
The challenge of previewing "change inside change" in customers' behavior	p. 167
Customer empowerment and opportunities for proactive action	p. 169
Responsive anticipation and creative anticipation in the customer dimension	p. 170
Responsive anticipation	p. 171
Creative anticipation	p. 174
How customer proactiveness helped Tecnisa generate purchase
Preference in online residential real estate transactions and enhance its brand on the Brazilian market	p. 177
Detecting market signs and articulating them to project the brand	p. 177
Investing proactively in the digital world	p. 180
Using capacities to create changes in market behavior	p. 184
Enjoying the fruits of a proactive strategy	p. 184
12 Conclusion: A Strategy To Anticipate The Future	p. 187
1 Being proactive relative to the market does not necessarily mean being a pioneer	p. 187
2 Proactiveness and reactiveness may be complementary strategies	p. 188
3 The present is the only place for the future to happen	p. 189
4 Anticipation does not mean prediction	p. 190
5 Sustaining a proactive market strategy is as important as creating it	p. 190
Final words	p. 192
Appendix: Evaluation Diagnoses: The Promark Scale and the Check-Up on Capacities	p. 193
Notes	p. 201
References	p. 221
Index	p. 231

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