The Microenvironment reference article from the English Wikipedia on 24-Jul-2004 (provided by Fixed Reference: snapshots of Wikipedia from wikipedia.org)

Microenvironment

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.

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