Business Environments
Market Environment Theory
The market environment is the external environment and directly originates after the Micro environment. The Market Environment is a place where a business has partial control; for instance customers. In the market environment the business can’t force their customers or potential customers to buy their product nonetheless the business is still able to advertise to them in the hopes of persuading them to purchase their product or service.
In the Market Environment we use Porters 5 Forces Model to analyse this environment. Porters 5 Forces consists of the following:
1. Level of Rivalry in the market – The business should improve the amount and quality of information about their competitors as possible such as their strategies, locations and eventhe products or services being sold.
2. Availability of substitute products – Which means are there substitute products or services to your product.
3. Threat of new entrants into the market – Are there possible new entrants that may enter the market you are currently serving.
4. Power of Suppliers – Identify who has the most …show more content…
Many people are consumers even if they don’t know about it such as when Andy giggles and Miranda gives her a lecture about the blue sweater she was wearing, saying that Andy thinks it’s just a sweater she brought from a little shop on the corner of a street when in actual fact that sweater was pick out precisely for her by the people standing in that very room (24:23). This shows that Runway have an even bigger target market than originally perceived which in turn means that they should be doing more marketing to their fellow customers so as to continually be growing which means more profit and better salaries and bigger budgets to spend at
Market Environment Theory
The market environment is the external environment and directly originates after the Micro environment. The Market Environment is a place where a business has partial control; for instance customers. In the market environment the business can’t force their customers or potential customers to buy their product nonetheless the business is still able to advertise to them in the hopes of persuading them to purchase their product or service.
In the Market Environment we use Porters 5 Forces Model to analyse this environment. Porters 5 Forces consists of the following:
1. Level of Rivalry in the market – The business should improve the amount and quality of information about their competitors as possible such as their strategies, locations and eventhe products or services being sold.
2. Availability of substitute products – Which means are there substitute products or services to your product.
3. Threat of new entrants into the market – Are there possible new entrants that may enter the market you are currently serving.
4. Power of Suppliers – Identify who has the most …show more content…
Many people are consumers even if they don’t know about it such as when Andy giggles and Miranda gives her a lecture about the blue sweater she was wearing, saying that Andy thinks it’s just a sweater she brought from a little shop on the corner of a street when in actual fact that sweater was pick out precisely for her by the people standing in that very room (24:23). This shows that Runway have an even bigger target market than originally perceived which in turn means that they should be doing more marketing to their fellow customers so as to continually be growing which means more profit and better salaries and bigger budgets to spend at