An intra‐ and inter‐organisational perspective on industrial segmentation

Abstract

Purpose The purpose of this paper is to introduce and discuss a contextual framework, which is based on different purposes of segmentation. A matrix is proposed for segmentation that distinguishes between strategic and operational levels and the degree to which new value is created. Design/methodology/approach The conceptual discussion aims at contributing to development of the discussion of segmentation purpose. Findings Several models have emerged in the segmentation literature, but the purposes of many segmentation models are not explicitly addressed. However, the purpose of a model affects the segmentation process and has ramifications to the subsequent implementation. This paper links segmentation to the purpose of segmenting and discusses the degree to which previous choices have impact on a firm's possibility to select and implement new segments. Research limitations/implications This paper contributes to a more extensive discussion on segmentation. It adds to the discussion on segmentation purpose and implementation problems. Originality/value The proposed matrix sheds new light on the importance of having a clear purpose with a model. Furthermore, it is shown that different purposes may have different ramifications to the firm and be more or less simple to implement, depending on the degree to which changes in the firms' activities, actors and resources are needed. Likewise, changes in established relationships have to be implemented or new ones created.

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