Steps involved in driving forces analysis include
A)developing a comprehensive list of all the potential causes of changing industry conditions.
B)predicting which new driving forces will emerge next.
C)making it difficult to achieve a competitive advantage via anything other than being the industry's low-cost leader.
D)identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes are needed to prepare for the impact of the driving forces.
E)discerning which among the five competitive forces is most potent and which is least potent.

Question

Quizplus · Accepted Answer

The steps involved in driving forces analysis are identifying the driving forces, assessing whether their impact will make the industry more or less attractive, and determining what strategy changes are needed to prepare for the impact of the driving forces. Developing a comprehensive list of potential causes of changing industry conditions and predicting new driving forces are not part of driving forces analysis. Making it difficult to achieve a competitive advantage via anything other than being the industry's low-cost leader is a result of the analysis, not a step in the process. Discerning which among the five competitive forces is most potent and which is least potent is part of Porter's Five Forces analysis, which is a separate analysis from driving forces analysis.

Steps Involved in Driving Forces Analysis Include