Driving Forces Analysis

question 67

Multiple Choice

Driving forces analysis

• A)involves identifying the driving forces,assessing whether their impact will make the industry more or less attractive,and determining what strategy changes a company may need to make to prepare for the impact of the driving forces.
• B)identifies which strategic group is the most powerful.
• C)helps managers identify which industry member is likely to become (or remain)the industry leader and why.
• D)helps managers identify which key success factors are most likely to help their company gain a competitive advantage.
• E)helps managers identify which of the five competitive forces will be the strongest driver of industry change.

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Definitions:

Market Price

The present cost at which an item or service is available for purchase or sale in a market.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is not achievable.

Equilibrium

A state in a market where the quantity demanded equals the quantity supplied, resulting in a stable market price.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.