Market Environment Analysis – Micro TrendsThe micro environment is one that is close to a business and influences its ability to serve its consumers. It includes competitors, consumers, the company itself, companies in its market channel and customer markets (Law, 2009). Here, the two trends that affect Masters the most would be competitors and consumers. According to Magner (2014), the Australian hardware retail market is quite competitive with almost 56.3% of its revenue generated by the top 4 players. Bunning's has significant market influence and is the largest player in the industry. Masters Stores resorted to rapid expansion to remedy this situation. A sure way for Masters Stores to triumph over Bunning's is to deliver greater value and satisfaction to the consumer. They must therefore do more than adapt to consumer needs. They must also gain a strategic advantage by strongly positioning their offering relative to what their competitors can offer (Kotler, Armstrong, Agnihotri, & Haque, 2010). Another important micro-trend would be that of the consumer. Throughout the marketing process, the focus is always on consumers, as they are the most important players in the business microenvironment. The overall objective of the marketing process targets the needs of consumers and aims to forge a strong relationship with them (Kotler et al, 2010). Masters should focus on generating engagement and trust from their consumers. These attributes ultimately lead to loyalty and therefore constitute a strategic objective and a sure source of long-term profitability (Miquel, Caplliure and Adame, 2014). The success of the marketing war has diminished at the retail level due to the rise of independent consumers. They are not in a position to “control... middle of paper... a competitive advantage that serves them well. Since its comprehensive expansion plan is expected to be completed within the next 5 years, Masters might also look into technological aspects such as implementing the use of RFID tags on consumers who frequent the stores. This would go a long way in optimizing inventory and help Masters serve their consumers better. As stated earlier, employees are the key to the success of an organization and play a vital role while providing services to the consumer. Masters has already provided a pleasant shopping experience with its welcoming environment. An employee who can provide the consumer with exactly what they want, in the most timely and efficient manner, would enable the consumer to have a completely satisfying experience at Masters, which would encourage brand loyalty and do good to the reputation of Masters..