13. Driving Forces Analysis
Performing an industry analysis (see Chapter 17, “Industry Fusion Analysis”) can reveal much about the current state of an industry and the potential for it to generate profitability for its incumbents; nevertheless, change and uncertainty are ever present in the competitive environment. 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.
Background
Change, particularly longer-term change, became a topic of interest to researchers, managers, and policy makers following World Wars I and II. DFA was developed in the 1950s as a means for ...
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