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.
