• The production-oriented approach is a business philosophy that prioritizes maximizing production efficiency and minimizing costs. This approach is focused on producing goods on a large scale to achieve economies of scale and drive down costs.
  • This approach was especially popular during the industrial revolution in Europe
  • It is also popular with some Chinese manufacturing companies that make routine items like needles, plastic balls and pencils and sell them overseas to countries like Zimbabwe
  • This is because there is little room for product differentiation and price is usually the most important thing
  • It is less popular these days as competition has forced firms to try and differentiate their products from those of competitors

Features of Production-Oriented Approach:

  • Production efficiency is the top priority.
  • Emphasis on mass production and economies of scale.
  • Focus on cost reduction through standardization and simplification of production processes.
  • Limited product offerings with minimal variations.
  • Minimal customization or personalization of products.
  • Little to no market research to understand customer needs and preferences.
  • Marketing and sales efforts are minimal.
  • The goal is to produce as much as possible to meet demand.
  • Limited innovation in product development.
  • Little emphasis on customer satisfaction or building customer relationships.


  • Lower costs due to economies of scale and standardized production processes.
  • Higher production efficiency and output due to streamlined processes and limited product variations.
  • Reduced risk of overproduction and excess inventory.
  • Easy to manage and control production processes.
  • Easy to replicate and scale production processes.


  • Limited product offerings can lead to decreased customer satisfaction.
  • Minimal customization or personalization can limit customer loyalty.
  • Minimal market research can result in products that do not meet customer needs or preferences.
  • Limited innovation can make it difficult to keep up with changing market trends and consumer demands.
  • Minimal marketing and sales efforts can result in low brand recognition and limited customer awareness.

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