The market environment
Tuesday, 10 February 2026 14:23
Components of the market environment
Intermediaries
• These are individuals or businesses that distribute and sell the products/
services of a business.
• Intermediaries bridge the gap between producers and consumers.
• Intermediaries include: wholesalers, retailers, agents, brokers, transportation
services, etc.
• Some intermediaries assist businesses with packaging and advertising of their
products and services.
Regulators
• Regulators are government bodies that make rules and regulations to control the activities
of businesses.
• These rules and regulations are put in place to ensure that businesses do not exploit their
customers or employees.
• Examples of these government bodies/organisations include the South African Bureau of
Standards (SABS), Airports Company South Africa (ACSA), etc.
Competitors
• Competitors refer to businesses/organisations that provide or sell more or less the same
goods/services.
• Businesses will be forced to offer quality products or services at the lowest possible prices
or else they will lose their customers to their competitors.
• Businesses should monitor the activities of their competitors so that they could produce
goods or services that are of better quality than their competitors.
• Power of suppliers: The following Porter’s Five Forces influence competition:
– Power of consumers.
– Threats of substitute products/services.
– Competitive rivalry.
– Competition is beneficial to customers because it keeps prices down
Community-Based Organisations (CBO's)
• Community-based organisations (CBOs) are established to assist the community with job
creation, socio-economic development, and becoming self-sufficient.
• They are local oganisations that operate in the community to provide social services with
aim of social upliftment.
• They focus on socio-economic issues such as: – HIV/AIDS– unemployment– crime–
illiteracy
New Section 3 Page 1
Tuesday, 10 February 2026 14:23
Components of the market environment
Intermediaries
• These are individuals or businesses that distribute and sell the products/
services of a business.
• Intermediaries bridge the gap between producers and consumers.
• Intermediaries include: wholesalers, retailers, agents, brokers, transportation
services, etc.
• Some intermediaries assist businesses with packaging and advertising of their
products and services.
Regulators
• Regulators are government bodies that make rules and regulations to control the activities
of businesses.
• These rules and regulations are put in place to ensure that businesses do not exploit their
customers or employees.
• Examples of these government bodies/organisations include the South African Bureau of
Standards (SABS), Airports Company South Africa (ACSA), etc.
Competitors
• Competitors refer to businesses/organisations that provide or sell more or less the same
goods/services.
• Businesses will be forced to offer quality products or services at the lowest possible prices
or else they will lose their customers to their competitors.
• Businesses should monitor the activities of their competitors so that they could produce
goods or services that are of better quality than their competitors.
• Power of suppliers: The following Porter’s Five Forces influence competition:
– Power of consumers.
– Threats of substitute products/services.
– Competitive rivalry.
– Competition is beneficial to customers because it keeps prices down
Community-Based Organisations (CBO's)
• Community-based organisations (CBOs) are established to assist the community with job
creation, socio-economic development, and becoming self-sufficient.
• They are local oganisations that operate in the community to provide social services with
aim of social upliftment.
• They focus on socio-economic issues such as: – HIV/AIDS– unemployment– crime–
illiteracy
New Section 3 Page 1
