Market-scanning and market-shaping: why are firms blindsided by market-shaping acts?

Abstract

Purpose This paper aims to investigate two seminal market-scanning frameworks – the five-forces analysis and PESTEL environmental scanning tool – to assess their readiness for anticipating market-shaping acts. Design/methodology/approach Drawing on the market-shaping literature that conceptualizes markets as complex adaptive systems, this conceptual paper interrogates the underlying assumptions and “blind spots” in two seminal market-scanning frameworks. The paper showcases three illustrative vignettes in which non-industry actors catalyzed market change in ways that these market-scanning frameworks would not be able to anticipate. Findings Marketing strategists can be “blindsided” as seminal market-scanning frameworks have either too narrow an interpretation of market change or are too broad to anticipate specific types of market-shaping acts. The assumptions about markets that underpin these market-scanning frameworks contribute to incumbents being slow to realize market-shaping acts are taking place. Research limitations/implications The authors extend market-scanning to include a type of managerial myopia that fails to register the socially embedded, systemic nature of complex contemporary markets. Furthermore, the paper provides an “actors-agendas-outcomes” scanning framework that offers awareness of market-shaping acts. Originality/value This paper is the first to consider market-scanning frameworks from a market-shaping perspective.