Organizational Context

The organization context can be grouped as three parts -- internal , competitive(micro) and external (marco) environment .

In terms of competitive (micro) environment that is the most important knowledge in this part , a competitive environment is the industry - specific environment comprising the organization's customers , suppliers and competitors ( Boddy 2011). In addition , there is a porters which has 5 forces - a tool to help us analyze the micro environment . That is the power of buyer and supplier , threat of new entry and substitution , and competitive rivalry .

Case

Celine is a one of famous brand in the world . This company is focus on the clothe , bag and shoes . Moreover , it had become more popular since 2010 .

As regard the 5 forces of Celine , the first part is suppliers power . Celine has some suppliers , such as handmade company or studio . That mean's the supplier of Celine is fixed . However , that also mean's the company is difficult to change the supplier . In addition , the product of Celine is not similar with other brands' , because that has different design . The second part is buyer power .  The luxury market is a large market . Also , it had become more bigger . Celine  has many loyalty customers . There is a certain amount of order every year . In other side , the customer is fixed , and the target market of Celine is middle and upper class . Moreover , it is difficult to attract the new customers . The third part is threat of substitution . Due to the design and style , the threat of substitution of Celine is low . Further more , the fourth part is threat of new entry . It is expensive to enter this industry , because the experience needed , but training easily available . In addition , the luxury market is full . There are many famous and popular brands in the world  . So , new entry quite difficult . Finally , the last thing is competitive rivalry . Celine has many competitors , such as Chanel , Prada , Hermes and LV . Also , the switching cost is high , and the costs of leaving market also is high. However , there is high customer loyalty  .