Microenvironment

economic-dictionary

The microenvironment is used to define those forces external to and close to the company, which have a direct impact on its ability to serve its product or service to the end customer.

The microenvironment exists as long as there is commercial activity.To place the microenvironment in our mind, we must remember that it is one of the two dimensions that make up the marketing environment. His study is related to microeconomics.

These have a direct impact on your ability to serve your product or service to the end customer. Like, for example, the regulation of the industry.

What is the microenvironment for?

Studying the microenvironment by companies is essential. This is because the products require many steps to reach the end 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. All this depending on factors such as the size of the company, the exclusivity of its product or service, the financial resources it has available, the degree of knowledge of its clients 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, internal and external.

  • Internal microenvironment:
    • Company: there must be a certain harmony between the objectives and plans of the different departments of the company.
  • External microenvironment:
    • Suppliers: a close relationship with suppliers of raw materials is important to achieve good conditions in the long term.
    • Competitors: adapting the company's strategy taking into account how the competition acts is mandatory to have competitive advantages over competitors.
    • Customers: satisfying customers is the ultimate goal of any company, for that reason, any study that provides us with more data about them will be beneficial for the organization.
    • Intermediaries: external companies that participate in the process of advertising, promotion and distribution of the products to the end customer.
    • Interest groups or stakeholders: issues as essential as being able to access financing, the criticisms that the media can make or the demands by governments to use certain quality criteria to approve a product or service depend on them.

Example of the microenvironment

Let's imagine that we want to launch a new product on the market, an innovative project, an original idea that promises to work.

Although the expectations are excellent, the entire value chain needs to function to complete the cycle successfully.

  • The finance department must approve a budget that allows it to be carried out. On the other hand, that of supply, ensuring that sufficient raw material will be available, and within the expected period.
  • Suppliers will be a key piece, treating them as partners in this process is beneficial to achieve good conditions in the exchange, quality products, discounts, punctual deliveries, etc.
  • Competitors will carry out actions that we must study to counteract and be able to counterattack.
  • The intermediaries will ensure that the product or service reaches the public, they will distribute it and they will advertise it. Therefore, it will also be important to identify him as a partner for a more fruitful relationship.

In this way it is confirmed that success does not depend solely on the product or service itself, but on a process that many agents go through.

Tags:  Business USA banks 

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