Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Industry driving forces analysis

09/01/2021 Client: saad24vbs Deadline: 3 days

Driving Forces and Key Success Factors




Driving Forces (or Change Drivers)

Driving forces are forces outside the firm (external factors) that trigger the change of strategy in an organization. Industry conditions change because important forces (the most dominant ones that have the biggest influence on what kinds of changes will take place in the industry’s structure and competitive environment) are driving industry participants (competitors, customers, or suppliers) to alter their actions. Thus the driving forces in an industry are the major underlying causes of changing industry and competitive conditions. Driving forces analysis has two steps: identifying what the driving forces are and assessing the impact they will have on the industry.




The Most Common Driving Forces

Many forces can affect an industry powerfully enough to qualify as driving forces. Some are unique and specific to a particular industry situation, but most drivers of change fall into one of the following categories:




1. The Internet and new e-commerce opportunities and threats it breeds in the industry;


2. Increasing globalization of the industry;


3. Changes in the long-run industry growth rate;


4. Changes in who buys the products and how they use it.


5. Product innovation;


6. Technological change;


7. Market innovation;


8. Entry or exit of major firms;


9. Diffusion of technical know-how across more companies and more countries;


10. Changes in cost and efficiency


11. Growing buyer for preferences for differentiated products instead of a commodity product (or for a more standardized product instead of strongly differentiated products);


12. Regulatory influences and government policy changes;


13. Changing societal concerns, attitudes, and lifestyles;


14. Reductions in uncertainty and business risk.




The link between driving forces and strategy

Sound analysis of an industry’s driving forces is a prerequisite to sound strategy making. Without keen awareness of what external factors will produce the biggest potential changes in the company’s business over the next one to three years, managers will be ill prepared to construct a strategy tightly matched to emerging conditions. Similarly, if managers are uncertain about the implications of each driving force or if their views are incomplete or wrong, it’s difficult for them to craft a strategy that is responsive to the driving forces and their consequences for the industry. Therefore, driving forces is not something to take lightly. The concept has practical strategy-making value and is basic to the task of thinking strategically about where the industry is headed and how to prepare for the changes.




Key Success Factors

An industry's key success factors (KSFs) are those things that most affect industry members' ability to prosper in the marketplace-the particular strategy elements, product attributes, resources, competencies, competitive capabilities, and business outcomes that spell the difference between profit and loss and, ultimately, between competitive success or failure. KSFs by their very nature are so important that all firms in the industry must pay close attention to them-they are the prerequisites for industry success or, to put it another way, KSFs are the rules that shape whether a company will be financially and competitively successful. The answers to three questions help identify an industry's key success factors:




 On what basis do customers choose between the competing brands of sellers? What product attributes are crucial?


 What resources and competitive capabilities does a seller need to have to be competitively successful?


 What does it take for sellers to achieve a sustainable competitive advantage?




In the beer industry, the KSFs are full utilization of brewing capacity (to keep manufacturing costs low), a strong network of wholesale distributors (to gain access to as many retail outlets as possible), and clever advertising (to induce beer drinkers to buy a particular brand and thereby pull beer sales through the established wholesale/retail channels). In apparel manufacturing, the KSFs are appealing designs and color combinations (to create buyer interest) and low-cost manufacturing efficiency (to permit attractive retail pricing and ample profit margins). In tin and aluminum cans, because the cost of shipping empty cans is substantial, one of the keys is having plants located close to end use customers so that the plant's output can be marketed within economical shipping distances (regional market share is far more crucial than national share).


Determining the industry's key success factors, given prevailing and anticipated industry and competitive conditions, is a top-priority analytical consideration. At the very least, managers need to understand the industry situation well enough to know what is more important to competitive success and what is less important. They need to know what kinds of resources are competitively valuable. Misdiagnosing the industry factors critical to long-term competitive success greatly raises the risk of a misdirected strategy. In contrast, a company with perceptive understanding of industry KSFs can gain sustainable competitive advantage by training its strategy on industry KSFs and devoting its energies to being distinctively better than rivals on one or more of these factors. Indeed, companies that stand out on a particular KSF enjoy a stronger market position for their efforts - being distinctively better than rivals on one or more key success factors presents a golden opportunity for gaining competitive advantage. Hence, using the industry's KSFs as cornerstones for the company's strategy and trying to gain sustainable competitive advantage by excelling at one particular KSF is a fruitful competitive strategy approach.


Key success factors vary from industry to industry and even from time to time within the same industry as driving forces and competitive conditions change. Only rarely does an industry have more than three or four key success factors at anyone time. And even among these three or four, one or two usually outrank the others in importance. Managers, therefore, have to resist the temptation to include factors that have only minor importance on their list of key success factors-the purpose of identifying KSFs is to make judgments about what things are more important to competitive success and what things are less important. To compile a list of every factor that matters even a little bit defeats the purpose of concentrating management attention on the factors truly critical to long-term competitive success.


MGT 6359 Page 3


Seminar in Strategic Management

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Homework Guru
Helping Hand
Top Essay Tutor
University Coursework Help
Writer Writer Name Offer Chat
Homework Guru

ONLINE

Homework Guru

Hi dear, I am ready to do your homework in a reasonable price and in a timely manner.

$102 Chat With Writer
Helping Hand

ONLINE

Helping Hand

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$100 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$105 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$102 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Caterpillar swot analysis - Simon armitage sir gawain pdf - Financial management assessment - Mathematical statistics with applications in r 2nd edition solutions - Case study on selection with solution - How to write a timeline paper - How does a banker's acceptance work - Discussion - OL - Role of IT in BI - Virtual fetal pig dissection worksheet answers - Essay Tutor - Switched mode power supplies rmit - Ideia kde definition of gifted and talented twice exceptionality - History paper : The Cold War Debates about America's Role in the World - Neo scholasticism metaphysics - Be moneysmart module 1 - Niche partitioning and species coexistence answers - Arc flash incident energy table - Academic behavioral confidence scale - Bus 475 final exam 100 questions - Richard lehne government and business - Maximizing owners' equity value means carefully considering all of the following except: - Ali macgraw sex addiction - Robbins timber in bristol - Her three days short story - Data are made anonymous by - Aleks acc 100 - As 1926.1-1993 free download - Lucila es más alta y más bonita __ tita - Cas trade promotion management - Tesco call centre dundee - Cane da pastore bergamasco - " Charts and Graphs" - Answer the question in 500 words - Rotten to the core dance tutorial - Is nursing a career or profession - Rebekah age when she married isaac - Partial statement of cash flows - CC-4 - What questions do social scientists ask - TRoisieme Respondo - Wj & lm sinclair scholarship in engineering - Reply - Where does rand water go once it has been abstracted - Auckland city council 35 graham street - Change management principles and methodologies - When did bank of america acquired merrill lynch - Alliteration in still i rise - Article - Robert palmer she makes my day chords - Physical properties of paper - Health the basics 12th edition chapter 1 pdf - 4 types of innovation invention extension duplication synthesis - Anglia ruskin graduation 2017 - Johanna makes the table below to organize her notes about centripetal forces. - What is the approximate speed of sound in air - Intel Annual Report Evaluation - Mcgraw hill connect accounting answers chapter 10 - CHRISTIAN SERVANT LEADERS - Harrow bangkok term dates - Islamic environmental ethics hsc - Topic 4: Application of Research -2 - Derek gregory geographical imaginations - Use the internet to research and find one example of a data visualization each for categorical data, time-series data, and spatial data. - Wendy moffat crossley heath - Chronicle of a death foretold film - How to splice 8 strand rope - Faith Essay - How to cite sources in a speech outline - Discussion post (American Lit) - Team Work and Critical Thinking - Investment decision under certainty - Access module 1 textbook project - 4 2 presentation marketing channel analysis assignment - What is the midpoint of the class 7-11 ? - Cybersecurity Awareness Campaign - Discussions 1 & 2 - Swot analysis of snacks industry - Data Management - Bus 475 week 4 apply project plan - Shark tank season 9 episode 2 - 4 dip switch combinations - Nosql and sql data modeling ted hills pdf - Tata nano marketing strategy pdf - Discussion Pen Attack and Cyber Terrorism - Bourgeois utopias the rise and fall of suburbia - Fba data collection tool - Unit VI Case Study - 7.2 choose a legal form of business true or false - Disaster managment - The usefulness of mendeleev's periodic table was confirmed by - What are the four main branches of earth science - Currency refers to umuc - Case study - Solicited and unsolicited application letter - Absolute gravitational potential energy - Where should pesticides be stored servsafe - History Movie Question - Significant cash transaction report - For environmental balance pick up a rifle - Ray and rural eos fitness