The correct answer to this open question is the following.
It is true to say that King Philip II used the war to his advantage when building his empire but came up short during the Spanish Armada's sail against England.
The three major events that caused the Spanish to succumb to European forces were the following.
First, the King's overconfidence. He believed that his Spanish fleet was undefeatable. Secondly, poor planning. King Philip II was a stubborn man and was not known to be the best strategist. This poor planning of the strategy for the invasion of England was a major factor. Thirdly, poor weather. As part of the poor planning, the weather conditions never favored the "invisible Spanish Armada."
Let's remember that the idea of King Philip II was to invade Great Britain with what he considered to be the best Navy in Europe: his beloved "Invisible Armada." The original purpose of the invasion was to overthrow the Protestant Queen Elizabeth I.
How did this affect Spain's power worldwide in the years to follow?
This defeat greatly impacted the navy and military forces of the Spanish kingdom that kept its battles in the French territory and against the Ottoman Empire.