Question $2$Question $3$

Driving forces analysis entails

determining which of the five competitive forces is the biggest driver of industry change and deciding

what changes a company needs to make to best protect itself from the adverse impacts of the very strong

competitive force that is driving industry change.

predicting whether future market conditions are likely to be attractive or unattractive, predicting how the

industry's driving forces will alter the factors for future competitive success, and then crafting a strategy

that will shield the firm from as many of the different adverse driving forces as possible.

identifying all of the potential causes of changing industry conditions.

identifying what the driving forces are, assessing whether the drivers of change are, on the whole, acting

to make the industry more or less attractive, and determining what strategy changes are needed to

prepare for the impacts of the driving forces.

learning what the drivers of industry success are and which industry key success factor is the most

important determinant of company profitability.

Which of the following are most unlikely. to qualify as driving forces?

Product innovation and changes in who buys the industry's product and how they use it

Emerging new Internet technology applications, reductions in uncertainty and business risk, regulatory

influences, and government policy changes

Mounting competition from substitutes, increasing efforts on the part of industry members to collaborate

with suppliers, and the speed with which the number of industry key success factors is either rising or

falling

Changes in an industry's long$-$term growth rate, the entry or exit of major firms, and changes in cost and

efficiency

Increasing globalization of the industry and marketing innovation