Customer Needs Linked to Production Strategy and Firm’s Dynamic Capabilities

Abstract

This study identifies and analyzes the key factors of an efficient customer oriented production strategy. The paper supports the view that dynamic capabilities can be used successfully for improving company’s efficiency. This research is a case study research related to production strategy. In a case company, totally 31 interviews were made from 16 subsidiaries and 13 from end customers. The present paper focuses more on end customers’ than internal customers.Key findings can be identified as follows: effective information flow, flexibility, speed and responsiveness need more focus in the study of dynamic capabilities. Delivery accuracy is the key, while short delivery time is a competitive factor. This research is focused to power electronics business segment which is research limitation. To make wider conclusions, more empirical studies are needed. As a Practical implications,this research helps firms to improve their strategy process by understanding real customer needs. The research results bring additional value to the previous studies regarding company strategy, business environment, innovativeness and operational excellence.