Driving forces analysis involves:
developing a comprehensive list of all the potential causes of changing industry and competitive conditions and predicting whether the intensity of competition is likely to grow stronger or weaker.
Identifying what the driving forces are and determining which one originated in the outer ring of the company’s macro-environment and which ones originated in the inner ring.
identifying what the driving forces are, determining which industry members will be positively impacted by the collective impact of the driving forces, and determining which ones will be negatively impacted.
identifying which of the five competitive forces will be the strongest driver of industry change, and determining whether the industry’s profit prospects are likely to get better or worse.
identifying what the driving forces are and assessing whether the drivers of change are, on the whole, acting to make the industry more or less attractive and determining what strategy changes are needed to prepare for the impacts of the driving forces.
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