Reference no: EM132602185

Question - Internal Organization theorists contend that external factors in general and the industry in which a firm chooses to compete has a stronger influence on the firm's performance than do the internal functional decisions managers make in marketing, finance, and the like. Firm performance, they contend, is primarily based more on industry properties, such as economies of scale, barriers to market entry, product differentiation, the economy, and level of competitiveness than on internal resources, capabilities, structure, and operations. The global economic recession's impact on both strong and weak firms has added credence of late to the notion that external forces are more important than internal.

a. Does this view put emphasis on a question of whether external or internal factors are more important in gaining and maintaining competitive advantage? Why?

b. What is the key to securing and keeping a competitive advantage?