Each industry has its own development trends and its own characteristics. Industry conditions and competition change under the influence of various forces and factors. The main drivers of competition are:
changes in the long-term trends of economic growth of the industry; changes in the composition of consumers, the introduction of new products; entering or leaving the market of large companies; increasing globalization; changes in cost structure and productivity levels; growth (decrease) of demand for personalized or standard goods; changes in legislation and policy; changing societal values and lifestyles; reducing uncertainty and risk.
Driving force analysis is a prerequisite for developing an effective strategy. Only by understanding for yourself which external factors will cause the most significant changes in the company’s business in the next year or three, it is possible to develop a strategy that ensures an adequate response to new circumstances.
One way to early identify the driving forces that will emerge in the future is to systematically track new trends. Environmental monitoring is the observation of processes in the economy, politics, ecology, technology, society to identify trends and conditions that over time can turn into driving forces, and tracking all new phenomena, ideas, approaches for a long (at least three years) period.