Industry Analysis Technique: The Nine Forces (Part 2)
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août 28, 2008 · News Feed from United BIT
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 analysis-followed by Industry Analysis or Porter’s Five Forces, which together provide a structural framework outlining an industry and a unique and perhaps more holistic perspective on a firm’s competitiveness. Post “Industry Analysis Technique: The Nine Forces (Part 1)” has presented firm’s environment and the approach by which it may be strategically and competitively analyzed. Accordingly, to perform the Nine forces analysis, an analyst needs to address the three basic levels of organizational environments: the general environment, the operating or industry environment, and the internal environment. This post will look at the strategic rationale and its implication as well as strength and weakness of the methods.
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