Industry driving forces

APRESENTATION

ONIndustry driving forces

Roll No. :- 05Stream :- MAM SEM – IV

Prepared By :- Janvi H. DhorajiyaSubmitted To :- Mr. Bharat Savaliya

(ASS. Professor in Smt. Shantaben Haribhai Gajera MBA Mahila College )

Industry Driving Forces

Introduction

Industry Driving Force

• In the 1970s, Benjamin Tregoe developed the concept of the driving force as a way to think about an organization’s strategic intent.

• “the primary determinant of the products and services an organization will and will not offer and the markets (customers, consumers, and geographies it will and will not serve.”

How to Conduct Driving Forces Analysis

• Identify all the main driving forces in a particular industry.

• Assess and rank the impact of each driving force. • Consider impact and proffer solution.

“Each driving force has positive elements that identify

opportunities and negative elements that identify risk.”

Problems of Driving Forces Analysis

• Improper assessment of stakeholders or macro environmental factors.

• Corporate fantasy • It cannot singlehandedly determine a firm’s

strategy.

Most Common Driving Forces

• Internet & the new e-commerce opportunities and threats it breads in the industry.

• Increasing globalization• Change in an industry long term growth rate• Changes in who buy the product and how

they use it.• Product innovation.• Technological changes.• Marketing innovation.

Con…

• Entry or exit of major firms.• Diffusion of technical know how more

companies and more countries.• Changes in cost and efficiency.• Growing buyer preferences for differentiated

products instead of a commodity product.• Reduction in uncertainty and business risk.• Regulator influence and govt. policy changes.• Changing societal concerns ,attitude , and

lifestyles.

Link between driving forces and strategy

• Without understanding the industry driving forces the managers can not prepare the strategy which match with the emerging conditions.

• If managers are uncertain about the implications of the each strategy it is difficult to draft the strategy.

• So driving forces analysis is not something to take lightly; it has practical value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes.

Industry Driving Forces

Tele-Communication Industry•Technology Advances•Competition•New Services

Retail Industry •Development of Supply Chain •Government Regulations•Changing consumer preferences

Conclusion

Bibliography

• http://www2.uhv.edu/wang/MGT6331/Questions/Driving%20forces%20vs.%20Key%20Success%20Factors.htm

• www.slideshare.net/ezendwwwu/strategic-analysis-6365371

THANK YOU