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The industry environment is the second factor that influences company's prospects originating in the environment of its industry like competitor rivalry and the bargaining power of buyers and suppliers. The third and final factor is the operating environment which consists of factors that influence a company's competitive situation which includes factors such as competitive position, suppliers, clientele, and creditors. These three sets of factors provide the challenges that a particular company faces in its attempts to attract or acquire needed resources and to profitably market its goods and services (Pearce 2005)...
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