Today I studied the micro factors that affect the business environment. As a product designer or product manager, everyone should know these micro factors.
- Customers
- Suppliers
- Competitors
- Employees
- Shareholders
- Investors
Let’s discuss them one by one.
Customers
The most important element that affects the business is the “Customer.” The customer is the central focus of any business. We need to understand customer needs, preferences, behavior, demographic area, etc., to make the business successful. For example, customers are moving towards more technologically advanced products to make their lives easier. This would require businesses to change their line of products accordingly.
Suppliers
The supply of raw materials should not stop. Do not depend only on one supplier. Keep a backup of suppliers. Also, check the cost, quality, and reliability of suppliers, as they affect the business.
Competitors
Understanding competitor analysis is also required to make any business successful. If you know your competitors, you can make your product more useful. Analyzing the competition helps us find gaps, opportunities, and product offerings. Know the product strengths and weaknesses. If you have only one product, there is no competitor in the market. But if you are making a product that is already available in the market, competitor analysis is required. For example, soap, bread, shampoo, etc. To make your product successful, you have to find a feature that other companies have not used.
Employees
Employees are the backbone of any organization. Employee skill sets, education, knowledge, motivation, leadership, and attitude directly affect business quality and output. Keep your employees happy and reward them from time to time.
Shareholders
Shareholders are those people who invest money in the business. Keeping them happy is also important. Arrange meetings with shareholders from time to time and update them about the company’s status.
Investors
Investors are those people who invest and buy shares. Maintain a healthy relationship with investors.
These micro environmental factors affect a company’s immediate operational activities. To run any business successfully, implement the above-mentioned points.
