Driving Force
Chapter 20
Driving Forces Analysis
Ch20. Driving Forces
•
•
•
•
•
•
•
•
•
Short Description
Background
Strategic Rationale & Implications
Strengths & Advantages
Weaknesses & Limitations
Process for Applying Technique
Summary
Case Study: Digital Music Industry
FAROUT
FT Press 2007. All Rights
Reserved.
Business and Competitive Analysis.
By C. Fleisher & B. Bensoussan.
Ch20.2
Ch20. Driving Forces
Short Description
• Driving forces analysis (DFA) is a way of understanding and accounting for change at the industry level.
• ‘Drivers’ are clusters of trends that create influences on changes to an industry’s structure and a rival’s competitive conduct.
FT Press 2007. All Rights
Reserved.
Business and Competitive Analysis.
By C. Fleisher & B. Bensoussan.
Ch20.3
Ch20. Driving Forces
Background
• DFA was developed in the 1950s as a means for helping organizations and individuals deal with changes in the business environment.
• FFA was used to analyze the conditions that support or restrain a given outcome.
• This work captured the fancy of economists and set the stage for the further development of DFA within the competitive industrial context.
• Forces that push toward change are called driving forces.
Forces that resist change are called restraining forces.
• DFs are those significant, underlying ‘currents’ that define and drive events and trends in certain directions.
• These forces are typically broad in scope, long term in nature and associated with uncertainty.
FT Press 2007. All Rights
Reserved.
Business and Competitive Analysis.
By C. Fleisher & B. Bensoussan.
Ch20.4
Ch20. Driving Forces
Strategic Rationale and Implications
• Industry conditions change because forces are driving industry participants to alter their actions.
• DFs originate from within a firm’s industry and can create uncertainty. • First task: look for the DFs of the macro-environment.
• DFs may seem
Driving Forces Analysis
Ch20. Driving Forces
•
•
•
•
•
•
•
•
•
Short Description
Background
Strategic Rationale & Implications
Strengths & Advantages
Weaknesses & Limitations
Process for Applying Technique
Summary
Case Study: Digital Music Industry
FAROUT
FT Press 2007. All Rights
Reserved.
Business and Competitive Analysis.
By C. Fleisher & B. Bensoussan.
Ch20.2
Ch20. Driving Forces
Short Description
• Driving forces analysis (DFA) is a way of understanding and accounting for change at the industry level.
• ‘Drivers’ are clusters of trends that create influences on changes to an industry’s structure and a rival’s competitive conduct.
FT Press 2007. All Rights
Reserved.
Business and Competitive Analysis.
By C. Fleisher & B. Bensoussan.
Ch20.3
Ch20. Driving Forces
Background
• DFA was developed in the 1950s as a means for helping organizations and individuals deal with changes in the business environment.
• FFA was used to analyze the conditions that support or restrain a given outcome.
• This work captured the fancy of economists and set the stage for the further development of DFA within the competitive industrial context.
• Forces that push toward change are called driving forces.
Forces that resist change are called restraining forces.
• DFs are those significant, underlying ‘currents’ that define and drive events and trends in certain directions.
• These forces are typically broad in scope, long term in nature and associated with uncertainty.
FT Press 2007. All Rights
Reserved.
Business and Competitive Analysis.
By C. Fleisher & B. Bensoussan.
Ch20.4
Ch20. Driving Forces
Strategic Rationale and Implications
• Industry conditions change because forces are driving industry participants to alter their actions.
• DFs originate from within a firm’s industry and can create uncertainty. • First task: look for the DFs of the macro-environment.
• DFs may seem