Micro environment factors are those which can be controlled by the efforts of the management of the organisation. Micro environment factors include the six factors which affect the performance of the business and these factors include competitors, public, suppliers, workforce, customers and marketing intermediaries. Alibaba is operating at an international level and for the purpose of dealing with the various factors available in the environment; it needs to consider these factors. Alibaba need to consider these micro environment factors so as to analyse the competitiveness of the organisation. The analysis of the micro environment factors is as follows:
Competitors: competition is the most important aspect which affects the performance of the business at large. There are various businesses operating in the environment which are providing same services or products and are constantly making efforts for overcoming their competitors. These same types of products act as substitutes and affect the performance of the business. The factors which promote competition include the technological advancements, innovations, promotional techniques, strategies adopted by other companies whether operating online or offline. Alibaba is having a strong financial support for funding the operations of the business and strategies adopted by Alibaba for the promotion of the products or services are attracting the customers which have helped it in dealing with the increasing competition (China retail industry report (2012-2015), 2012). There are various competitors of Alibaba available in business environment which are offering services through online mode.
Suppliers: the suppliers are those who provide the raw material or the products to the business for producing the final output which can be offered to the customers for their consumption. Suppliers need to be effectively managed so as to execute the operations without any issue. The relationship with the suppliers needs to be established in a fair manner. Alibaba is offering wide range of services and products to its customers through online mode and it needs the products or services which are supplier by the suppliers. Alibaba is making efforts to maintain healthy relationship with the suppliers of the business.
Customers: customers are termed as the king of the market as they are responsible for the profitability of the business. Customers get attracted by the marketing strategies adopted by the business and the quality of the products or services offered by the business and the pricing policies of the business. Customers Alibaba need to analyse the demands of the customers and offer the products and services as per the demands of the customers which helps in enlarging the customer base of the business (Jin, 2010). The offers offered by the online companies affect the choice of the customers.