Question

How have changes in the marketing environment (macro & micro) affected manufacturers in the U.S?

Answer 1

In United States manufacturing is no longer simply about making physical products. It is influenced by macro & micro factors such as the nature of products, the economics of production, changes in consumer demand, and the economics of the supply chain. The main business micro factors that affect almost manufacturing business are competitors, media, shareholders, customers, employees, and suppliers. Macro factors consists of economic, socio-cultural, political-legal, technological, and international

These factors have led to a fundamental shift in the approach of the business of manufacturing companies. Customers demand personalization and customization as the line among consumer and creator continues to blur in the market. As these trends play out in a growing number of manufacturing sectors, a higher number of incumbents need to focus more tightly on roles resulting to concentration and consolidation, and avoid such prone to fragmentation. Because of the competitive pressures, large manufacturers may experience more pressure to focus on just single role, shedding aspects of the traits that might distract from the company becoming world class in its selected role consequently there is a significant restructuring of existing product manufacturers.

Technological innovations such as added sensors and connectivity turn “dumb” goods into “smart” ones, while goods rapidly become platforms and even move into the realm of services. Developments in political and legal forces have also impacted the industry. Social and cultural forces also impacts the industry as manufacturing sectors are being forced to review their products and services in to ensure that it become more environmentally friendly. Natural/physical forces such as minerals, oil, coal, etc that impact the business production.