- Industry analysis enables a company to develop competitive strategy that best defends against the competitive forces or influences them in its favours.
- The key to developing a competitive strategy is to understand the sources of the competitive forces.
- By developing an understanding of these competitive forces the company can
- highlight the company’s critical strengths and weakness
- animate its position in the industry
- Clarify areas where strategic changes will result in the greatest pay off
- emphasis areas where industry trends indicate the greatest significance as either opportunities or threats.