Customer Importance to the External Environment - Essay Example

Importance to the External environment I agree with the ment urged in contemporary best-selling management that customers are the most important elements in the external environment. In this regard, business organizations mainly compete for customers to earn more sales. This implies that rivalry among the existing firms within the external environment are attributed to the targeted customers. Firms in this case have to compete in various ways to win as many customers as possible. The focus here is the market, which is entirely built up by the customers.

The number of customers to be won by a given firm would only depend on the strategies employed to win the customers. Even with new entrants, customers constitute the key focus because of their attitude towards the new entrants against the existing firms’ products/services. The most important aspect in this regard is the strategy employed to gain high volumes of sales. Customers also force firms to differentiate product and identify their brands. Firms have to take note of substitute products and services in order to envision better ways of maintaining their customers and even gain more of them.

The statement may however be untrue in the situation whereby firms are dealing with the issue of bargaining power of their suppliers. In this case, the focus is solely on suppliers, which means that customers cannot have any impact on this relationship between the firm and its suppliers. Focusing on the suppliers in turn improves the company’s performance, which could have little or nothing to do with the customers.