IMPACT OF CUSTOMER/COMPETITOR/SUPPLIER

COMPONENTNAME : KRITIKA AGARWAL

ROLL NO. :161422

COMPONENTS OF SPECTIFIC ENVIRONMENT CUSTOMERS

SUPPLIERS

COMPETITORS

PUBLIC PRESSURE GROUPS

IMPACT OF CUSTOMER

COMPONENT

CUSTOMER COMPONENT■ The justification for the existence of a firm lies in the satisfaction of customer needs.■ In this context, it is appropriate to remember Peter F. Drucker’s observation on the

purpose of business. According to him, the purpose of any business is to create a customer.

■ There is no exaggeration that it is customers in the market place who dictate the fortunes of any business. Needless to say that those organizations which neglect the customer expectations and aspirations would find the long-term survival very difficult.

■ Customers’ tastes and preferences are not static, but keep on changing. Mention may be made of some of the changes in the recent past: the cell phone, the preference for quartz watches, audio-video gadgets, various sophisticated domestic appliances, cotton garments, fast foods and so on.

■ Organizations which are adept in identifying the changes in the customers’ attitudes and preferences or which can comfortably respond to the changes would survive and those which fail to take cognizance of changes would ultimately fall on the way side.

IMPACT OF CUSTOMERS ON ORGANISATION■ LOSS OF CURRENT CUSTOMERS■ LOSS OF POTENTIAL CUSTOMERS■ LOSS OF FUTURE CUSTOMERS■ LOSS OF REPUTATION■ LOSS OF EMPLOYEES■ LOSS OF PROFITS

NESTLE

IMPACT OF SUPPLIERS COMPONENT

Suppliers

■ our approach to suppliers needs to be part of your strategic plan since almost every company, whether product- or service-oriented, is dependent on suppliers. Many business owners seem to get this supplier issue backwards. They think that because they write the order, they're in the dominant position and can exploit it with unreasonable demands, including personal perks.

■ Let's get this right . . . you need good and reliable suppliers. When you find them, treat them like gold. Work as hard on building a good supplier relationship as you do building a good relationship with your customers.

■ And be loyal to your good suppliers. They are essential to your business's good health and growth.

IMPACT OF SUPPLIERS

■Quality■Timeliness■Competitiveness■Innovation■finance

HOW TO BE A VALUED CUSTOMER TO OUR SUPPLIERS ALWAYS PAY ON TIME

PROVIDE ADEQUATE LEAD TIME

PERSONALISE RELATIONSHIP

SHARE INFORMATION

IMPACT OF COMPETITORCOMPONENT

COMPETITORS• Many a policy of the organization are influenced by the competitors. In a competitive environment, the market place is characterized by moves and countermoves.

• The post-liberalization Indian markets for many products offer an excellent example as to how competition influences the organizations. In the last few years, in almost all the sectors of the Indian economy, competition has tremendously increased.

• The competitive situation is one of the most important of all the environmental influences. The competitive situation refers to the market where other businesses are providing products to meet the same customer need.

• Company after company is now redefining its business, rediscovering the markets, talking in feverish pitch about customer service, human resource development and concern for the society  

 

COMPETITION

DIRECT COMPETITION■ Direct competition exists

where organizations produce similar products that appeal to the same group of consumers. For example when two supermarkets offer the same range of chocolate bars for sale.

INDIRECT COMPETITION

■ Indirect competition exists when different firms make or sell items which although not in head to head competition still compete for the same £ in the customers pocket. For example, a High Street shop selling CD's may be competing with a cinema that is also trying to entice young shoppers to spend money on leisure activities.

IMPACT OF COMPETITORS• TAKING AWAY CUSTOMERS

• SCARING INVESTORS

• GRABBING THE STARS

• RAISING MARKET EXPECTATIONS

• FEAR UNCERTAINITY AND DOUBT

MC DONALDSCASE STUDY

THANK YOU