Driving forces analysis helps managers identify whether
A) the combined impacts of the driving forces will act to increase/decrease market demand, increase/decrease competition, and raise/lower industry profitability in the years ahead.
B) it will become more or less important to aim the company's strategy at being the industry's low-cost producer.
C) the driving forces will have a bigger impact on company profitability than competitive forces.
D) the industry is likely to become more or less vertically integrated and why.
E) competitive advantages are likely to grow or diminish in importance.

Question

Quizplus · Accepted Answer

Driving forces analysis allows managers to assess the impact of various external forces on the industry's future profitability, competition, and demand. By doing so, they can identify whether the combined impacts of these driving forces will act to increase or decrease market demand, increase or decrease competition, and raise or lower industry profitability in the years ahead. This analysis helps managers to anticipate changes in the industry and adjust their strategies accordingly.

Driving Forces Analysis Helps Managers Identify Whether