2 Market-based approach to strategy
2.1 The ‘near environment’
All organisations operate in a near or micro-environment, with which they frequently interact. These organisations will include customers, suppliers and competitors. Examples of the impact of the near environment on an organisation include:
competition for customers
competition for (or collaboration with) suppliers
competition for resources
competition (or collaboration) to influence external factors.
A market-based approach to strategy starts by analysing the near environment and the organisation's resources, and seeks through a process of further analysis and planning to fit the organisation to its environment.
The near environment is usually contrasted to the far environment (the macro influences on the organisation such as general economic and political trends).