Compared with the general environment, the industry environment has a more indirect effect on the firm's strategic competitiveness and ability to earn above-average returns.

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The industry environment has a more direct effect on the firm's strategic competitiveness and ability to earn above-average returns. The industry environment includes factors such as competitors, suppliers, customers, and substitute products, which affect the firm's ability to compete effectively in the market. The general environment, on the other hand, includes broader factors such as economic, technological, social, and political trends that may have an indirect impact on the firm's performance.

Compared with the General Environment, the Industry Environment Has a More