20Driving Forces Analysis

Short Description

Performing an industry analysis (see Chapter 6, "Industry Analysis (The Nine Forces)") can reveal much about the current state of an industry and the potential for it to generate profitability for its incumbents; nevertheless, change and uncertainty are ever present in the competitive environment. Driving forces analysis (DFA) is a way of understanding and accounting for change at the industry level. "Drivers" are clusters of trends that create influences on changes to an industry's structure and a rival's competitive conduct.

Background

Change, particularly longer-term change, became a topic of interest to researchers, managers, and policy makers following the First and Second World Wars. DFA was developed ...

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