Assess whether the drivers of change are, on the whole, acting to make the industry more or less attractive, and

DRIVING FORCES

The most powerful of the change agents are called driving forces because these collectively have the greatest impact in reshaping an industry landscape and altering competitive conditions within that industry.

Some driving forces originate in a company’s macro-environment; others originate in the company’s more immediate industry and competitive environment.

Driving forces analysis has three steps:

(1) identify what the driving forces are,

(2) Assess whether the drivers of change are, on the whole, acting to make the industry more or less attractive, and

(3) Determine what strategic changes are needed in order to prepare for and mitigate the impact of the driving forces.

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