The degree of environmental stability of industries and markets is a major factor in determining a firm's competitive advantage.

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Environmental stability refers to the degree of consistency or predictability in the external factors affecting an industry or market, such as government policies, economic conditions, and technological changes. If an industry or market is highly stable, firms may be able to anticipate and prepare for changes, giving them a competitive advantage. On the other hand, if an industry or market is highly volatile, firms may struggle to keep up with rapid changes and may lose their competitive position. Therefore, a high degree of environmental stability can be a key factor in a firm's competitive advantage.

The Degree of Environmental Stability of Industries and Markets Is