STRATEGIC
GROUP
Strategic Management
By
Strategy Class
WHAT IS A
STRATEGIC
GROUP?
The nature of competitive strategy
inherently positions organizations
competing in an industry into specific
groups with diverse quality ranges
distribution channels product features
and geographic coverages.
A strategic group is a cluster of industry
rivals that have similar competitive
approaches and market positions. 01
CHARACTERISTICS
Companies in the same strategic group can resemble one
another in any of several ways
Similar Products
01 They may have comparable product line
breadth sell in the same price or quality range
Similar Strategies
02 Emphasize the same distribution channels
depend on identical technological approaches
Or offer buyers similar services and technical
assistance
03 Similar Customers
Use essentially the same product attributes to
appeal to similar types of buyers
04
STRATEGIC GROUP MAPPING
is the best technique for :
revealing the market positions of industry competitors,
displaying the different market or competitive positions that rival firms occupy in the industry
The procedure for constructing a strategic group map is straightforward:
IDENTIFY ASSIGN
The competitive characteristics Firms
that delineate strategic approaches used in the occupying the same map location a common
industry strategic group
Example:
PLOT DRAW
firms on a two variable map Circules
around each strategic group making the circles
based on their strategic approaches proportional to the size of the group's share of
Example: total industry sales revenues.
10
STRATEGIC
GROUP
MAPPING
ANALYSIS
Strategic group maps are revealing in several aspects:
the most important has to do with identifying which rivals are similarly positioned
and thus closed rivals
generally the closer strategic groups are to each other on the map the
stronger the cross group competitive rivalry tends to be
although firms in the same strategic group are the closest rivals the next
closest rivals are immediately adjacent groups
some strategic groups are more favorably positioned than others because
they confront weaker competitive forces and/or because they are more
favorably impacted by industry driving forces.
MISSION
Source: Arthur Little. [Link]
VIDEO TUTORIALS
1.500 2018
Agriculture Our Clients
App
2.000 2022
Our Project Since
Source: [Link]
REFERENCES
ddd9255. (1 de septiembre de 2013). Strategic Group Mapping
[Archivo de Vídeo]. Youtube. [Link]