An industry’s driving forces:

a. Are generally determined by competitive pressures, the sizes of strategic groups, and the power of rival firms’ competitive strategies.

b. Act to modify the current industry situation, particularly as concerns whether demand for the product will increase or decrease, competition is likely to become more or less intense, and industry profitability is likely to rise or fall in the years ahead.

c. Frequently cause a leveling off of industry growth and a reduction in the bargaining power of buyers.

d. Are normally triggered by ups and downs in the economy, higher or lower inflation rates, higher or lower interest rates, or important new strategic alliances.

e. Can be triggered by the efforts of rival firms to employ significantly new or different offensive strategies, by growing competitive pressures from substitute products, and greater seller-supplier collaboration.