Difference Between Forces & Trends in Business


Forces and trends are two important parts of the economic market system. Forces are economic elements that companies can see but may not be able to control. Trends are business opportunities that companies use to increase their profitability.

Free Market

The free market system creates and utilizes external forces to change the business environment. Forces keep the free market competitive by “forcing” companies to make changes that will ensure their profitability.

Porter’s 5 Forces

Porter’s 5 force analysis consists of supplier power, barriers to entry, buyer power, substitutes and rivalry. Companies may be able to control some of these forces, such as supplier power or substitutes, to maintain their competitive edge.

Business Trends

Business trends are the current operational techniques companies use when selling goods to consumers in the market place. Trends may include external items like market analysis or internal items like outsourcing or e-business.

Market Analysis

Companies conduct a market analysis to determine the current consumer trends like demand, demographics or potential sales. These analyses help companies find potential opportunities for new profits.

Internal Trends

Companies review their internal operating trends to find cheaper ways to conduct business. Outsourcing non-essential business functions or using the Internet to generate sales are common types of internal trend reviews.

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