Competitors and suppliers

Need to know

What you need to know

• The micro-environment comprises immediate external forces affecting a business.
• Key actors include competitors, suppliers, customers, and intermediaries.
• Businesses can influence their micro-environment more than their macro-environment.
• Porter's Five Forces is a key framework for analysing competitive structure and industry profitability.

Explanation

Competitors and suppliers

1. The micro-environment comprises immediate external forces affecting a business.
2. Key actors include competitors, suppliers, customers, and intermediaries.
3. Businesses can influence their micro-environment more than their macro-environment.
4. Porter's Five Forces is a key framework for analysing competitive structure and industry profitability.