Beyond managing dimensions of the internal environment system

Technologically competitive firms must strategically position themselves to task environment influences. Firms are embedded in various contextual matrices, which most immediately include the specific industry competitive dynamics, or task environment, and the global competitive environment. Both of these environments include competitors, customers, regulators, supplier relationships, substitutes, and entry and exit barriers.

Impact of environmental factors

Depending on the specific situation, each of these factors may have a direct impact on the value-added creation processes. Research has demonstrated that companies in some environments can gain an advantage over their competition based on the quality of their environmental analysis.