Business Ecosystem

Every business depends on a network of organizations, from suppliers and distributors to customers and government agencies. Just like an ecosystem for plants...if there's suddenly a lack of water, it throws everything else off. Each part of a business ecosystem affects the others, and those companies that grow and survive have learned to adapt to change, beat the competition, and invest in the future.

For example, a labor strike affects both suppliers and manufacturers; an increase in the price of raw materials affects customers as well as company profits, and when the price of oil goes up, everyone (except the oil companies) is affected negatively. Business ecosystems can also present barriers to new entrants to the market, as they would have to break in or set up their own network of suppliers, distributors, and customers.