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 either quantitative or qualitative.
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 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 as this would not provide a clear differentiation between industry members. Instead, the variables chosen should indicate big differences in how rivals have positioned themselves to compete in the marketplace. The variables can be either quantitative or qualitative, and if more than one pair of variables help illuminate differences, then several maps should be drawn. The sizes of the circles on the map should be drawn proportional to the combined sales of the firms in each strategic group.

Which of the Following Is Not an Appropriate Guideline for Developing