Although microenvironment and competitive environment are both terms that refer to external factors and agents, they serve different purposes in the analysis. Macroenvironment is common for all the market players; hence, the competitive environment acts within the macroenvironment. All companies are affected by the global economic recession or by restrictions imposed by COVID-19 regulations.
The competitive environment consists of factors that can affect the company within the business realm. The competitive environment includes competitors, new entrants, substitutes and complements, suppliers, and customers. Each of the listed factors is dynamic and can pose both threats and opportunities to the company.