Government Policy Change Framework
Understand the impact of government policy on industry structure
The Government Policy Change Framework is a tool for understanding the impact of government policy on industry structure. It highlights the importance of considering the potential effects of government policy changes on a company's competitive position. The framework consists of several key elements, including changes in regulation, taxation, and trade policy.
- Government policy can have a significant impact on industry structure
- Changes in government policy can have a significant impact on a company's competitive position
- Companies must be aware of changes in government policy and adapt their strategy accordingly
- Monitor government policy for changesMonitor government policy for changes that could impact industry structure.Pro tipConsider the potential impact of changes in government policy on a company's competitive position.WarningFailure to monitor government policy for changes can leave a company unprepared for changes in the industry.
- Assess the impact of changes in government policyAssess the potential impact of changes in government policy on a company's competitive position.Pro tipConsider the potential effects of changes in government policy on regulation, taxation, and trade policy.WarningFailure to assess the impact of changes in government policy can lead to missed opportunities or unpreparedness for changes in the industry.
- Develop a strategy to respond to changes in government policyDevelop a strategy to respond to changes in government policy, including potential changes in regulation, taxation, and trade policy.Pro tipConsider the potential effects of changes in government policy on a company's competitive position and develop a strategy to respond to these changes.WarningFailure to develop a strategy to respond to changes in government policy can leave a company unprepared for changes in the industry.
Changes in government policy, including the shift from fixed to negotiated commissions, have had a significant impact on the securities industry.
Changes in government policy, including the introduction of national health insurance legislation, have had a significant impact on the wine industry.
The Government Policy Change Framework was developed by Michael E. Porter as part of his work on competitive strategy. It is based on the idea that government policy can have a significant impact on industry structure and that companies must be aware of these changes in order to remain competitive.