What is the industrial organization (I/O) model? Why do firms use it to analyze their external environment?

Explanation
The industrial organization model is a model that explains that the external environment should be taken care of or put into consideration before incorporating a strategy in a firm. The model explains that the choices made by managers inside an organization are not of great importance as the choice of the industry in which an organization chooses to compete in because of the future organizations' performance and sustainability.

Reasons for external environment analysis.

To know or develop their unique resources and competencies for the firm to acquire a competitive advantage and remain in the market in the long run.
To be able to undertake the SWOT analysis in the organization that will bring growth, volatility, and profitability
To formulate proper strategies and modify existing ones for the success and sustainability of the business.
To understand the transformation of the business's environment and thus come up with strategies to counter negative impact from the changes.
Answer
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