What is Strategic Group Mapping?

Strategic Group Mapping

The strategic group mapping is a technique for displaying the different competitive positions that rival firms occupy in the industry.
The strategic group mapping is graphically presented below:-

From this graphical presentation strategic group mapping can be easily understood.

What are the factors that lead to strategic groups?

Factors lead to strategic groups

The factors that lead to the formation of strategic groups are enlisted below -

• Homogenious size,
• Comparable breadth of market,
• Comparable product or service quality,
• Geographical distribution is similar,
• Identical technological approaches,
• Same level of vertical integration,
• Using same distribution channels, etc.

Define the strategic groups within the industry.

Strategic groups within the industry

Strategic alliance or groups are conceptually defined cluster of competitors that share similar strategies. It consists of those rival firms with similar competitive approaches and positions in the market.