The concept of strategic groups is relevant to industry and competitive analysis because
A) firms in the same strategic groups are rarely close competitors-a firm's closest competitors are usually in distant strategic groups.
B) strategic group maps help identify each company's market position and its closest competitors.
C) competition grows in intensity as the number and diversity of the strategic groups in an industry increases.
D) the profit potential of firms in the same strategic group is usually very similar.
E) competitive pressures tend to be weaker within strategic groups than across strategic groups.

Question

Quizplus · Accepted Answer

The concept of strategic groups is relevant to industry and competitive analysis because strategic group maps help identify each company's market position and its closest competitors. Strategic group analysis involves grouping firms in an industry based on similarities in their business models or strategies, such as pricing policies, distribution channels, and target customer segments. By understanding the strategic groups within an industry, firms can identify their position within the market and how they compete with other firms in the same group as well as with those in other strategic groups. This knowledge is essential to developing and implementing effective competitive strategies.

The Concept of Strategic Groups Is Relevant to Industry and Competitive