Which of the following is not an appropriate guideline for developing a strategic group map for a given industry?
A) The variables chosen as axes for the map should indicate big differences in how rivals have positioned themselves to compete in the marketplace.
B) The variables chosen as axes for the map can be quantitative,qualitative,or discrete and defined in terms of distinct classes and combinations.
C) The variables chosen as axes for the map should be highly correlated.
D) Several maps should be drawn if more than one pair of variables can help illuminate differences in the competitive positioning of industry members.
E) The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

Question

Quizplus · Accepted Answer

The variables chosen as axes for the map should not be highly correlated. If they are highly correlated, it means they measure similar aspects of the industry, and the map will not show significant differences between strategic groups. Instead, the axes should measure different dimensions of the industry, such as price, quality, distribution channels, product features, etc.

Which of the Following Is Not an Appropriate Guideline for Developing