With the aid of a strategic group map,one can
A) readily identify the entry and exit barriers for each strategic group.
B) pinpoint precisely which firms are in profitable strategic groups and which are not.
C) identify which competitive forces are strong and which are weak.
D) measure accurately whether across-group rivalry is stronger than within-group rivalry or vice versa.
E) often learn to what extent industry driving forces and competitive pressures favor some companies or groups and hurt others.

Question

Quizplus · Accepted Answer

A strategic group map allows managers to understand the competitive landscape of an industry by identifying and grouping together firms that pursue similar strategies. By analyzing the positioning of different firms on the map, managers can gain insights into the industry's driving forces and competitive pressures that favor some companies or groups and hurt others. Therefore, the best choice is (E) often learn to what extent industry driving forces and competitive pressures favor some companies or groups and hurt others. Options A, B, C, and D are incorrect because a strategic group map does not directly provide information on entry and exit barriers, profitability, or the strength of competitive forces or rivalries.

With the Aid of a Strategic Group Map,one Can