Question

Evaluating the industry's driving forces, as a whole, requires understanding their influence on the attractiveness of industry environment and:______________.

Answer 1

Answer:

B) generally are defined in ways that will strengthen or weaken market demand, competition, and industry profitability in future years.

Explanation:

When you evaluate the driving forces of an industry you must try to understand what causes changes at the industry level. The driving force of something is what gives that something energy and power. Therefore, when we look at a specific industry we must determine what forces are causing that industry to change. For example, green technologies (hybrids, electrical and nitrogen) are currently the driving forces of the automobile industry.

Driving forces materially impact the industry's future, since the current changes will become the industry's standard of the future. For example, in 2007 when the iPhone was introduced it changed the whole cellphone industry, but now all the cellphones are smartphones.