Proponents
of the Industrial Organization (I/O) view contend that external industry
factors are more important than internal factors in a firm achieving
competitive advantage. The global
economic recession’s impact on both strong and weak firms has added credence to
this notion, since thousands of internally strong firms disappeared. However, it is not a question of whether
external or internal factors are more important in gaining and maintaining
competitive advantage. Effective
integration and understanding of both external and internal factors is the key
to securing and keeping a competitive advantage.
