Desired Micro Environment of an innovative company
International Black Sea University
A company’s micro environment consists of 6 main components : Customers, Competitors, Organization, Market, Suppliers, and Intermediaries. If we want to analyze what a desire micro environment can be, we should go through each element and make use of them as good as we can.All the elements enumerated are manageable by a company itself and they directly influence the whole organization.
To begin with, it should be discussed what kind of relationship is hold between customers/consumers and an organization. Customers and consumers of a company’s products/services are closely monitored by a successful business. It must keep track of any changes in the customer’s interests and preferences, as well as changes in their purchasing habits. Customer focus is among top characteristics of an innovative company. The old saying “the customer is always right” is a key component of successful and innovative businesses. These businesses not only go above and beyond to ensure that their clients are satisfied, but they also listen to them. They figure out what their clients want or need, then come up with new ideas to implement those solutions. To be innovative, one must have creative ideas, that being said, the source of inspiration comes from a company’s customer base, thus, company’s focus should be on customer preferences. In order to choose the right customer, a company must take several steps. It should identify primary customers, who often does not know what value they prefer and hold, so an innovative company must be able to uncover the truth about their values, needs and preferences with the help of systematic research. Emoloyees of an innovative company must spot trends in a marketplace, and adapt and serve them then. Changing customer demographics provides a company with innovative ideas, so getting in touch with the marketplcce and monitoring customers’ behavior is a must.
An innovative company must have a good focus on its competitors as well. Knowing a lot about your competitors and their offers and advantages will help a company stand out with your own innovative goods and services. It goes without saying that competition boosts innovation and knowledge about customers, thus, a good micro environment means performing in a competitive environment. However, merely a good competition Is not always enough, since an innovative company must be able to take risks and be confident enough to bring new products.
In regards to the organization itself, the key characteristics of an innovative company are strategy focus, customer and external (competitor) focus (foresaid already), collaboration, several necessary traits within teams, etc. Business strategy should be driven by innovation and innovation should be at the heart of business strategy. It is crucial that the company comprehends the approach and the role of innovation. Strategic focus of innovation should be effectively communicated across the organization as well. A company filled with good leaders who establish a significant relationship with an organizational team and brings a certain energy ( such as drive and ambition) is a basis of an innovator organization. Moreover, no corporation has all of the necessary information and skills at its disposal. Extending your point of view across external environment is easier through powerful and flexible collaboration, which lets a company gain knowledge and learn from different sectors.
A marketing SWOT analysis is just as important as a SWOT analysis of the whole company. The marketing SWOT analysis allows a company to evaluate its skills, affiliations, partnerships, expanding opportunities, and diminishing markets. A marketing SWOT analysis will help an organization concentrate on the markets and audience segments that will yield the best results, as well as the tools and strategies you’ll need.
Concerning Intermediaries, they advertise a product across various marketing channels, and ensure attracting brand-loyal customers by developing customer relationships. Market intermediaries have a profound impact on sales and customer demand due to their important role in product distribution and promotion. They are as involved in marketing with as much interest as the company itself, so they try to bring success and perform their job well.
An innovative organization must as well manage and use media for their own good. They should make them provide help in promoting and raising their reputation, innovative organizations must be aware of the various ways through which they can communicate with their customers and must project a positive image of their business and brand, that is why media is a good influence.
To conclude, different factors’ analysis and researches about micro-environmental factors are needed for a company in order to remain creative and innovative, such as competitor analysis, consumer research, SWOT analysis, acquiring important and essential skills and knowledge, etc. Without all that, a company loses its power and ability to lead the market, adopt it and evolve, which is an innovation killer.