November 21 , 2008



Beyond managing dimensions of the internal environment system, technologically competitive firms must strategically position themselves to task environment influences. Firms are embedded in various contextual matrices , which most immediately include the specific industry competitive dynamics, or task environment) ,and the global competitive environment . Both of these environments include competitors, customers, regulators, supplier relationships, substitutes, and entry and exit barriers. Depending on the specific situation, each of these factors may have a direct impact on the value-added creation processes. Research has demonstrated that companies in some environments can gain an advantage over their competition based on the quality of their environmental analysis .

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