Question

Driving-forces analysis has

Multiple Choice

• 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.

• no real analytical value because the driving forces are already established in the marketplace and it is too late to make astute and timely strategy adjustments.

• perceived value and is associated with identifying the close and distant rivals within an operating industry.

• speculative value because it compels the firm to drive strategic intent and collective choice into operating practices.

• theoretical value because it allows managers to visualize the many different dimensions of the preferred forces that allow for industry functionality.

Answer 1

Answer : 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.

Note : In the driving forces analysis, industry structures as well as the competitive conduct etc are analyzed so that the current trends can influence the driving forces in the industry.