Oct. 10 Driving Forces of Change in Industry Analysis

Driving Forces (DFs)

Major causes reshaping industry landscape and competition.

Porter's 5 Forces

Framework to analyze competitive pressures in an industry.

Industry Scope

Defines market, products, and geographic boundaries.

Key Success Factors

Critical elements for achieving competitive advantage.

Remote Environment

External factors influencing industry and company operations.

Operating Environment

Immediate conditions affecting company performance.

Industry Attractiveness

Assessment of potential profitability and competition.

Reactive Strategy

Responding to changes only when necessary.

Proactive Strategy

Initiating actions to mitigate competitive pressures.

STEEP Analysis

Framework analyzing Social, Technological, Economic, Environmental, Political factors.

Industry Life Cycle

Stages: Emerging, Growth, Maturity, Decline, Shakeout.

Bargaining Power of Suppliers

Suppliers' influence on pricing and terms.

Threat of Entry

Risk of new competitors entering the market.

Threat of Substitutes

Availability of alternative products affecting demand.

Rivalry

Competition intensity among existing firms.

Commodity Product

Standardized product with little differentiation.

Unique Product

Distinctive product offering unique features.

Technology Change

Rate and impact of technological advancements.

Disruptive Technology

Innovations that significantly alter industries.

Common DFs

Frequent factors driving industry changes.

Globalization

Increasing interconnectedness of global markets.

Regulatory Influences

Government policies affecting industry operations.

Market Demand

Consumer desire for products or services.

Product Innovation

Development of new or improved products.

Marketing Innovation

New strategies to promote products effectively.

Societal Changes

Shifts in consumer attitudes and lifestyles.

Cost Efficiency

Reduction of costs while maintaining quality.

Business Risk

Potential for loss or negative impact on operations.

Technical Know-How

Expertise in technology spread across firms.