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Microenvironment

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The microenvironment is used to define those forces external and close to the company, which have a direct impact on their ability to serve their product or service to the final customer. As for example the regulation of the industry. The microenvironment exists whenever there is commercial activity.

To place the microenvironment in our mind, we must remember that it's one of the two dimensions that form the marketing environment. His study is related to microeconomics.

What is the microenvironment for?

Studying the microenvironment by companies is essential since the products require many steps to reach the final customer, and a good relationship with the actors involved in this process is essential.

Unlike the macro environment, the company will have the power to influence these forces, depending on factors such as the size of the company, the exclusivity of its product or service, the financial resources available to it, the degree of knowledge of its customers or the level of self-sufficiency among many others.

Microenvironment Classification

To analyze these forces or agents in detail, we will classify them according to their origin, internally and externally.

1) Internal microenvironment

- Company: there must be a certain harmony between the objectives and plans of the different departments of the company.

2) External microenvironment

- Suppliers: a close relationship with the suppliers of raw materials is important to achieve good long-term conditions.
- Competitors: adapting the company's strategy taking into account how the competition acts is mandatory to have competitive advantages over competitors.
- Clients: satisfying customers is the ultimate goal of any company, for that reason, any study that gives us more information about them will be beneficial for the organization.
- Intermediaries: external companies that participate in the process of advertising, promotion and distribution of products to the final customer.
- Stakeholders or Interest Groups: they depend on such essential issues as being able to access financing, the criticisms that the media can make or the demands on the part of governments to use certain quality criteria to approve a product or service.

Microenvironment Example

Imagine that we want to launch a new product to the market, an innovative project, an original idea that promises to work.

Although the expectations are excellent, it's necessary that the entire value chain works to complete the cycle successfully.

- The financial department must approve a budget that allows it to be carried out, that of provisioning, to ensure that sufficient raw material will be available, and within the expected time frame.
- Suppliers will be a key piece, treating them as partners of that process is beneficial to achieve good conditions in the exchange, quality products, discounts, timely deliveries, etc.
- The competitors will carry out actions that we must study to counteract and be able to fight back.
- The intermediaries will ensure that the product or service reaches the public, distribute it and advertise it, so it'll also be important to identify it as a partner for a more fruitful relationship.

In this way it's confirmed that success doesn't depend solely on the product or service itself, but on a process through which numerous agents pass.


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