Microenvironment Guide, Meaning , Facts, Information and Description

In business, a microenvironment consists of those forces close to a company that affect its ability to serve its customers.

Michael Porter in Porter's Five Forces categorised these as:

• Rivalry among existing Competitors
• Threat of new Competitors
• Bargaining Power of Customers
• Bargaining Power of Suppliers, and
• Products that can be used as Substitutes for the product

A change in any of these normally requires a company to re-assess its position in the marketplace so that it remains differentiated.

References

• Competitive Strategy: Techniques for analyzing industries and competitors (ISBN 0684841487) by Michael Porter presends Porter's Five Forces

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