Which of the following is not one of the competitive forces?

The competitive forces that shape an industry's dynamics typically refer to the various influences that can impact the competitive environment within a market. These forces, often described in Michael Porter's Five Forces Model, include suppliers, customers, potential entrants, substitutes, and existing competitors.

The external environment, while it does impact businesses and can influence strategy, is considered a broader context rather than a direct competitive force. It encompasses factors like economic conditions, regulations, and technology trends, which can indirectly affect competition but aren’t in themselves competitive forces like suppliers, other competitors, or customers, who directly engage in the market and influence the dynamics within it.

Therefore, identifying the external environment as the answer highlights its distinction from the core competitive forces that companies face directly in their industry. This understanding assists in strategic planning and competition analysis, underlining that while the external environment is crucial, it does not fit into the framework of competitive forces influencing an organization directly.