Question

Identify an existing organisation in an industry of your choice. The organisation can be either a profit or non-profit seeking organisation. If it is necessary, you may use a fictitious name for the organisation - however, do note that whatever information you use for your project is for assessment purposes only and will not be shared with third parties. If possible, select an organisation that you are familiar with and where information can be made available to you as per the requirements of your project. Please note that you are expected to fully base your answers on the chosen organisation. Using the chosen organisation as the basis for your project, attempt the following questions:

1.3 Using specific examples analyse the general key forces driving the industry of your chosen organisation. What are the implications for your organisation?
1.4 As a follow-up to question above analyse the competitive forces of that particular industry.
1.5 What phase of the industry life-cycle is your chosen organisation in? Critically discuss the strategies your chosen organisation should be deploying to in order to survive in the phase that it is in.

Answer 1

The driving forces in an industry can include technological, economic, and consumer behavior factors, while competitive forces are analyzed using Porter's Five Forces model. The phase of the industry life-cycle determines the strategies an organization should deploy, such as innovation during growth or cost reduction during maturity.

Step-by-step explanation:

Key Forces Driving the Industry

When analyzing the key forces driving a specific industry, various factors such as technological advancements, regulatory changes, economic shifts, and consumer behavior come into play. For instance, in the technology industry, rapid innovation, decreasing costs of production, and high consumer demand are significant driving forces. The implications for an organization in this industry could be the need to constantly innovate, maintain competitive pricing, and adapt to consumer preferences to remain relevant.

Competitive Forces in the Industry

Using Porter's Five Forces model, we can analyze the competitive forces within an industry. These forces include the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and rivalry among existing competitors. For example, in the airline industry, there is high competition due to low switching costs for customers, powerful supplier influence with only a few aircraft manufacturers, and substantial threats from substitutes such as high-speed trains or video conferencing tools.

Industry Life-Cycle Phase

An organization could be at any stage of the industry life-cycle: introduction, growth, maturity, or decline. A company in the maturity phase should focus on strategies like product differentiation, market expansion, and cost reduction to maintain its market share. In contrast, a company in the decline phase may need to consider diversification or exiting the market.