Business Drivers of Change - Case Study Example

Industry key success factors (KSFs) are the forces that have the biggest influence on companies’ ability to flourish in their respective industries. They include core competencies, product features, business outcomes, specific strategic factors, resources, and competitive capabilities that determine the difference between profit and loss and, eventually, between competitive ability and failure (Hill and Jones, 48). By their true nature, KSFs are so important that all industry stakeholders must be wary of them; they are the determinants of market success. They are also the doctrines that define whether a firm will be financially and competitively capable. When identifying any industry’s KSFs, three questions can be used to guide the process. These are:
- On what grounds do consumers decide which brands of sellers to pay for? What product features are important?
- What resources and competitive strengths must a seller have to achieve competitive success?
- What is required for sellers to attain a sustainable competitive advantage?

Different industries have different KSFs and, in some cases, KSFs have even varied from time to time in the same market as competitive factors and driving forces of change evolve (Hill and Jones, 34).

Competitor A has more financial resources compared to other companies, but it has huge debts that have lowered its investor appeal and affected its ability to secure financing for key projects. Other firms post average profits but have managed to reduce their debt and achieve slow but stable growth.

Colin’s alternatives include reinventing products to achieve differentiation. Other options include targeting new markets in which competition is not as stiff (Hill and Jones, 26). There is also the option of adopting more aggressive marketing strategies that ensure the market share does not decline. This will facilitate direct competition with rivals and maintain relevance despite prevailing conditions. Finally, another alternative includes accumulating more resources to support the financing of commercial activities and to achieve stability.