Abstract: Firm specific environment is individualized environment which has special value for a firm and get syncretized with it during developing. The introduction of the concept firm specific environment will not only remedy the defects of object perspective, perceptive perspective and enacted perspective of environment, but also carry on effective merger of the three perspectives. The theories and practices of strategy management will get helpful supplement and expansion. Enterprises can establish competitive strategy based on firm specific environment. They can identify, choose and improve their own firm specific environment to create and keep sustainable competitive advantage together with core competency.

Key words: firm specific environment(FSE), environmental perspective, competitive advantage, core competency, competitive strategy