Processes by Market Orientation
Processes can also be categorized on the basis of four marker orientations:
- Make to Stock (MTS): the goods usually are standard mature products with few product customization options. As a general rule, make to stock products compete primarily on the basis of cost and availability. For examples such products include most retail goods such as breakfast cereals, milk shirts, jeans and office desks.
- Assemble to Order (ATO): Assemble to order products are standard items that are assembled from in stock subassemblies. This allows customers to specify a wide range of options. For example many camera dealers can assemble any configuration of a single lens reflex camera from a basic body. The customer specifies the exact type of lens desired or the viewing system etc.
- Make to Order (ATO): Make to order products are made from previously engineered designs but are made only after an order has been received. Make to order products are used when a standard product is too costly to stock have too uncertain demand or will deteriorate if stocked on a shelf. Examples of goods made using the made to order products market orientations are commercial airplanes, prescription glasses etc.
- Engineer to Order (ETO): This market orientation is used to make unique products that have not been previously engineered. Extensive customization to suit the customer need is possible but only if the customer is willing to wait for this addition stage in the value creation process. For example it includes specialized industrial equipment hand built furniture etc.