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The Complete Guide to Business Analytics (Collection) by Thomas H. Davenport

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6Industry Analysis (The Nine Forces)

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This chapter combines the two substantial topic areas of macro-environmental analysis with industry analysis and demonstrates the unique creativity that is part of the world of business and competitive analysis.

Organizations and the industries in which they operate are embedded in a broad environment, which can significantly impact the competitiveness of both industries and organizations.

The starting point then of any strategic analysis is some form of environmental analysis—generally STEEP/PEST analysis1—followed by Industry Analysis or Porter's Five Forces,2 which together provide a structural framework outlining an industry and a unique and perhaps more holistic perspective on a firm's ...

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