QS Study

A relationship between driving forces and strategy –

Sound analysis of an industry’s driving forces is a prerequisite to sound strategy making. If the driving forces of a company are not analyzed properly then the strategies of that company would not be able to cope with the emerging conditions. If managers are uncertain about the implications of each driving forces, it is difficult for them to craft strategy that is responsive to the driving forces and their consequences for the industry.

A strategy is a method or plan chosen to bring about the desired future, such as the achievement of a goal, objective, or solution to a problem. The strategy is the determination of the basic long-term goals and objectives of an enterprise and the adoption of a course of objectives and the allocation of resources necessary to carry out these goals and objectives. This is achieved by adopting and implementing strategies over a period of time.

The driving forces in an industry are the major fundamental causes of changing the industry and competitive conditions. The internal and external factors that influence the decisions and policies an organization makes to settle spirited. The external environment includes the areas of General, Industry, and Competitor environment. Internal forces include core capabilities, employee turnover, product, and technological innovation