- Although it is important to judge what growth stage an industry is in, there is more analytical value in identifying the specific factors causing fundamental industry and competitive adjustments.
- Industry and competitive conditions change because of certain forces are enticing or pressuring industry participants to alter their actions.
- Driving forces are those that have the biggest influence on what kinds of changes will take place in the industry’s structure and competitive environment.
- Driving forces analysis has two steps:
a. Identifying what the driving forces are
b. Assessing the impact they will have on the industry
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