CHAPTER 3

THE INTERNET
PRESENTED BY
DARYL A. JAVIER MICRO
ENVIRONMENT
WEEK 2
PART

ONE
INTRODUCTION
All organisations operate within an environment that influences the way in which they
conduct business. Organisations that monitor, understand and respond appropriately to
changes in the environment have the greatest opportunities to compete effectively in the
competitive marketplace.

SITUATION
ANALYSIS
ENVIRONMENTAL
SCANNING
 Collection and review of information about an
SITUATION organisations external environment and internal
processes and resources in order to inform its
ANALYSIS strategies.

The process of continuously monitoring the

ENVIRONMENTAL environment and events and responding
SCANNING accordingly.
 MACRO
Specific forces on an
ENVIRONMENT
organisation generated
Broader forces
by its stakeholders.
SITUATION affecting all
organisations in the
6 Cs ANALYSIS
marketplace including
ENVIRONMENTAL social, technological,
MICRO SCANNING economic, political and
ENVIRONMENT legal aspects.

PESTLE
PART

TWO
MARKET PLACE
 Bargaining 6 Cs
Power of 1. COMPANY
buyers 2. CUSTOMERS

6 Cs
Bargaining
Power of
3. COMPETITION
suppliers 4. CHANNEL
Threat of 5. COMPLEMENTORS
substitutes 6. COMMUNITIES
Rivalry among

MICRO Existing
competitors
ENVIRONMENT Barrier to
entry
 Commoditisation is The process whereby product selection
Bargaining becomes more dependent on price than on differentiating
Power of features, benefits and value-added services.
buyers
Soft lock-in is an Electronic linkages between supplier and
6 Cs customer increase switching costs. E.g. Apple, Microsoft,
Google.
 Internet EDI is the Use of electronic data interchange
Bargaining standards delivered across nonproprietary
Power of Internet protocol networks.
suppliers
Business-to business exchanges or marketplaces is a Virtual
6 Cs intermediaries with facilities to enable
trading between buyers and sellers.
 Internet EDI is the Use of electronic data interchange
standards delivered across nonproprietary
Barrier to
Internet protocol networks.
entry
Business-to business exchanges or marketplaces is a Virtual
6 Cs intermediaries with facilities to enable
trading between buyers and sellers.
 Threat of
substitutes

Spotify.com offers a new alternative in purchasing music via

6 Cs online.
GROUP
CHALLENGE
CLIENT BRIEF
Referring to the Table below, assess the impact of the
Internet on www.nationalbookstore.com

State the possible competitive forces that the book

industry might experience.

Provide a necessary solution by employing the power of

internet marketing to which you feel have the most
significant impacts.
PART

THREE
CUSTOMERS
PART

FOUR
ONLINE BUYER BEHAVIOUR
PART

FIVE
COMPETITORS
PART

SIX
SUPPLIERS
PART

SEVEN
INTERMEDIARIE