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The dramatic breakdown of the market orientation concept in the pharmaceutical industry: lessons from Vioxx

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Abstract In this article we present an in-depth case study to better understand the underlying market orientation concept in relation to bringing new technologies to the marketplace. We use the… Click to show full abstract

Abstract In this article we present an in-depth case study to better understand the underlying market orientation concept in relation to bringing new technologies to the marketplace. We use the case history of the anti-arthritis drug Vioxx, developed and marketed by the company Merck & Co. Inc that allegedly killed thousands of customers. The case shows how market orientation can take shape and how the key components may form an explosive cocktail prone to problematic behaviour rather than a synergistic set of orientations that creates value for customers. From the data covering 20 years, it is clear that a consumer orientation and competitor orientation, for example, are difficult to internalise and balance by employees. A competitive orientation seems to lead to tunnel vision regarding profit and market share outcomes. Implications for the fundamental market orientation concept, innovation management, together with management challenges are discussed.

Keywords: orientation; dramatic breakdown; breakdown market; market; orientation concept; market orientation

Journal Title: Journal of Strategic Marketing
Year Published: 2017

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