The document presents an analysis of industry driving forces, outlining the concept developed by Benjamin Tregoe in the 1970s as crucial for determining an organization's strategic intent. It describes how to conduct a driving forces analysis, identifies several main driving forces such as technological changes and globalization, and discusses potential problems in this analysis. Furthermore, it emphasizes the importance of understanding these forces for crafting effective strategies in response to industry changes.

1. A
PRESENTATION
ON
Industry driving forces
Roll No. :- 05
Stream :- MAM SEM – IV
Prepared By :- Janvi H. Dhorajiya
Submitted To :- Mr. Bharat Savaliya
(ASS. Professor in Smt. Shantaben Haribhai
Gajera MBA Mahila College )

3. Introduction

4. Industry Driving Force
• In the 1970s, Benjamin Tregoe developed the
concept of the driving force as a way to think
about an organization’s strategic intent.
• “the primary determinant of the products and
services an organization will and will not offer
and the markets (customers, consumers, and
geographies it will and will not serve.”

5. How to Conduct Driving Forces
Analysis
• Identify all the main driving forces in a particular
industry.
• Assess and rank the impact of each driving force.
• Consider impact and proffer solution.
“Each driving force has positive elements that identify
opportunities and negative elements that identify
risk.”

6. Problems of Driving Forces Analysis
• Improper assessment of stakeholders or macro
environmental factors.
• Corporate fantasy
• It cannot singlehandedly determine a firm’s
strategy.

7. Most Common Driving Forces
• Internet & the new e-commerce
opportunities and threats it breads in the
industry.
• Increasing globalization
• Change in an industry long term growth rate
• Changes in who buy the product and how
they use it.
• Product innovation.
• Technological changes.
• Marketing innovation.

8. Con…
• Entry or exit of major firms.
• Diffusion of technical know how more
companies and more countries.
• Changes in cost and efficiency.
• Growing buyer preferences for differentiated
products instead of a commodity product.
• Reduction in uncertainty and business risk.
• Regulator influence and govt. policy changes.
• Changing societal concerns ,attitude , and
lifestyles.

9. Link between driving forces and
strategy
• Without understanding the industry driving forces
the managers can not prepare the strategy which
match with the emerging conditions.
• If managers are uncertain about the implications of
the each strategy it is difficult to draft the strategy.
• So driving forces analysis is not something to take
lightly; it has practical value and is basic to the task
of thinking strategically about where the industry is
headed and how to prepare for the changes.

10. Industry Driving Forces

12. Bibliography
• http://www2.uhv.edu/wang/MGT6331/Questi
ons/Driving%20forces%20vs.%20Key%20Succe
ss%20Factors.htm
• www.slideshare.net/ezendwwwu/strategic-
analysis-6365371