Презентация на тему Forces Driving Industry Change

steps:
1. Identifying the industry’s driving forces
2. Assessing how the

driving forces are making the industry more or less attractive
3. Determining the strategic changes that are needed to prepare for the impacts of the driving forces.

in long term industry growth rate
2. Increasing globalisation
3 Emerging

new internet capabilities and applications
4. Changes in who buys the product and how they use it(changes in buyer demographics)

cell phones, televisions, digtal cameras, video games etc
6. Technological

changes and manufacturing process innovation
7. Marketing innovation
8. Entry or exit of major firms
9. Diffusion of technical knowhow across more companies and countries

eg PC makers
11. Reductions in uncertainty and business

risk
12. Regulatory influences and govt policy changes
13. Changing societal concerns, attitudes and lifestyles

the following 3 questions:
1. Are the driving forces collectively

acting to cause an increase or decrease in the demand for industry products?
2. Are the driving forces acting to make competition more or less intense?
3. Will the combined effect of the driving forces lead to higher or lower industry profitability?

for managers to draw some conclusions about what strategy

adjustments will be needed to deal with the impacts of the driving forces

attempt to answer the question “what market positions do

rivals occupy-who is strongly positioned and who is not?”
This is done through a technique called Strategic Group Mapping which attempts to display the different market and competitive positions that rival firms occupy in the industry.
This tool is very useful when an industry has so many competitors that it is not practical to examine each one in depth

of industry rivals that have similar competitive approaches and

market positions.
Companies in the same strategic group can resemble one another in any of several ways:
1. They may have comparable product line breath
2. They may also sell in the same price or quality range
3. They may emphasise the same distribution channels
4. They depend on identical technological approaches or
They offer buyers similar services and technical assistance.

identical strategies and have comparable mkt positions, that industry

will contain one strategic group.(the opp is true)

firstly there is need to identify the competitive characteristics

that differentiate firms in the industry;eg
Price /Quality range(high, medium,low)
Geographic coverage(local, regional, national)
Degree of vertical integration(none, partial,full)
Product line breath(wide,narrow)
2. Plot the firms on a two variable map using pairs of the differentiating characteristics

in about the same strategy space to the same

strategic group
4. Draw circles around each strategic group, making the circles proportional to the size of the group’s share of total industry sales revenue.

Models
Many Models

are close competitors and those which are distant competitors.
2.

They also reveal that it is not all positions on the map that are equally attractive for 2reasons:
a) Prevailing competitive pressures and industry driving forces favor some strategic groups and hurt others
b) The profit potential of different strategic groups varies due to the strengths and weaknesses in each group’s market position.

next?
This involves carrying out a competitive intelligence about rivals’

strategies, their latest actions and announcements, their resources strengths and weaknesses, the efforts being made to improve their situation.
The above information assists in anticipating the next moves that rivals are likely to make, and to prepare defensive countermoves.
Managers who fail to study competitors closely risk being overtaken by rivals’ fresh strategic moves.

attributes, competencies, competitive capabilities and market achievements with the

greatest impact on future competitive success in the marketplace.
Common types of Industry Key Success Factors include:
1. Technology-related KSFs eg expertise in a particular technology or proven ability to improve production processes

KSFs e.g ability to achieve economies of scale; Quality

control know-how; high utilisation of fixed assets; high labor productivity; low cost design etc
3. Distribution related KSFs eg a strong network of wholesale distributors/dealers; strong direct sales capabilities; ability to secure favorable display space on retailer shelves.

and well respected brand name; courteous, personalised customer service;

Accurate filling of buyer orders; customer guarantees and warrantees; clever advertising
5. Skills and capability related KSFs eg talented workforce; design expertise; national or global distribution capabilities, short delivery time capability etc
6. Other types of KSFs eg overall low costs; convenient locations; a strong balance sheet and access to financial capital

company’s chances of crafting a sound strategy .
Thus managers

should resist the temptation of labeling a factor that has only minor importance as a KSF.
Being distinctively better than rivals on one or two KSFs tends to translate into competitive advantage.

company a good opportunity to earn attractive profits?
The conclusion

to the above question is determined by the following factors:
The industry’s growth potential
Whether powerful competitive forces are squeezing industry profitability to subpar levels and whether competition appears destined to grow stronger or weaker.
Whether industry profitability will be favorably or unfavorably affected by the prevailing driving forces.
The degrees of risk and uncertainty in the industry’s future