According to the external perspective, which of the following has the greatest impact on a firm's competitive advantage?
A) proper utilization of the firm's human resources
B) selecting the most attractive industry in which to compete
C) identifying the firm's key competitive advantage
D) developing the firm's unique resources and capabilities

Question

Quizplus · Accepted Answer

The selection of the most attractive industry in which to compete has the greatest impact on a firm's competitive advantage from an external perspective. The industry in which a firm operates plays a significant role in determining the firm's level of competition, potential customer base, regulatory environment, and other external factors that impact the firm's success. Therefore, choosing the right industry to compete in can provide a significant advantage for a firm. While the other options are also important, they do not have as direct of an impact on a firm's external competitive advantage.

According to the External Perspective, Which of the Following Has