There are two approaches or two models – the external analysis (the general environment, the industry environment and the competition environment) and internal analysis (resources, capabilities and core competencies, as well as value chain) in general in strategic management. Only the internal analysis is useful to explain the strategic competitiveness and above-average-return of a business in the market, because it is focused on the internal attributes of a business and identify the most valuable attributes in it.
Do you agree or disagree with above statement. Why? Please discuss it briefly.
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