Where the real payoff from strategic analysis of industry dynamics comes is for managers to draw some conclusions about what strategy adjustments will be needed to deal with the impacts of the driving forces. True or false? Explain.

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Quizplus · Accepted Answer

However, taking the right kinds of actions to prepare for the industry and competitive changes being wrought by the driving forces first requires accurate diagnosis of the forces driving industry change and the impacts these forces will have on both the industry environment and the company's business. To the extent that managers are unclear about the drivers of industry change and their impacts, or if their views are off-base, the chances of making astute and timely strategy adjustments are slim. So driving-forces analysis is not something to be undertaken 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 ahead.

Where the Real Payoff from Strategic Analysis of Industry Dynamics