An example of a market based structure

An example of a market based structure

ZIMSEC O Level Business Studies Notes: Market based organisational structure

  • This is where the organisation’s divisions, operations, duties and positions are based markets, market segments, industry or customer types
  • For example a large clothing store with different departmental heads based on customer sex (Male or Female)
  • The organisation might first segment their market based on a variety of criteria (age, sex, demographics, income etc)
  • A department is created for each segment/market
AdvantagesDisadvantages
Focus is on customer needs and wantsComplicates coordination
Develops expertise in handling their type of customerCustomers can overlap. Female partners may buy clothes for their male partners for example
Can encourage healthy competition among departmentsDepartment units focus on their own goals instead of organisational goals
Is flexible

To access more topics go to the O Level Business Notes page.

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