Needs Evolution Model as Premise for Manufacturing Strategy

Abstract

This paper represents some answers to the questions about what kind of premises should be provided for production/operations strategy and then what must be the logical background for them in terms of the standpoint of a firm as profit-seeker to get earning profit in needs evolution. This paper first develops needs evolution model to explore the logic of profit-seeking in a dynamic environment based on the assumptions that (1) Only explicit needs having willingness to pay are meaningful to a firm, however big the market size is (2) Where there are explicit needs, there always exists the normative business paradigm as mechanism to meet that explicit needs with the very product customer wants and the very process to make it possible to produce/provide at the lowest cost in a delivered time. Finally this paper attempts to explain the industrial hegemony shift in industry evolution that depends eventually upon needs evolution through adaptive goodness, which should be used as the premise in formulating the production/operations strategy.