Stehanie | Team GBC | November 17, 2019


While it is critical to understand the nature and intensity of the competitive forces in your industry, its is equally critical to understand that the intensity of these forces is fluid and subject to change. All industries are affected by new developments and ongoing trends that alter industry conditions, some more speadily than others. Any strategies devised by your management team will therefore play out in a dynamic industry environment, so it’s imperative that your managers consider those factors driving change in your industry and how they might affect the industry environment. Moreover, with early notice, managers may be able to influence the direction or scope of environmental change and improve the outlook.

Industry and competitive conditions change because forces are enticing and pressuring certain industry participants such as competitors, customers and suppliers to alter their actions in important ways. The most powerful of the change agents are called driving forces because they have the biggest influences in reshaping the industry landscape and altering competitive conditions. Some driving forces originate in the macro-environment, but most originate in your company’s more immediate industry and competitive environment.

With this fundamental analysis that determines the survival of any business in any industry in mind, we built StatPlan, our awesome strategic planning software to help analyse driving forces in three steps: (1) indentify what the driving forces are, (2) assess whether the drivers of change are, on the whole, acting to make the industry more or less attractive, and (3) determine what strategy changes are needed to prepare for the impact of the driving forces. All three steps merit further discussion.

I hope you enjoyed this short thought leadership piece. Much love and I would love to hear your thoughts…:)



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