CA Inter P6 · Chapter 11 · Question 11 of 11
Shakti Batteries notices that electric two-wheelers are spreading fast, battery chemistry is changing quickly and government incentives are shifting demand away from lead-acid batteries. In industry and competitive analysis, these developments are best described as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Driving forces that are changing the industry's structure and competitive conditions
Explanation
Driving forces are the major underlying causes of change in an industry, such as changes in long-term growth rate, product and process innovation, and regulatory influences. They change the industry's competitive structure, so firms must identify them and adjust their strategies. They are external, not internal weaknesses.
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