A group of firms following the same strategy in a given target market is called a ________.
A) cabal
B) cartel
C) cooperative
D) informal alliance
E) strategic group

Question

Quizplus · Accepted Answer

A group of firms following the same strategy in a given target market is called a strategic group. A strategic group consists of those firms in an industry that follow the same or similar strategies along the strategic dimensions, such as the level of product quality, pricing policy, distribution channels, degree of vertical integration, degree of diversification, etc. This concept is used to analyze industry competition and helps firms identify potential competitors and understand their competitive position in the market. A cabal is a secret political clique or faction, a cartel is a group of firms that collude to fix prices and output levels, a cooperative is a group of independent firms who work together to achieve mutual benefits, and an informal alliance is a loosely structured collaboration between firms without a formal agreement.

A Group of Firms Following the Same Strategy in a Given