Why is visualizing strategic group structure an important component of competitive analysis?
A)It eliminates any potential changes in the competitive landscape.
B)It identifies the major arenas of competition.
C)It focuses on the indirect competitors in an industry.
D)It helps companies retain only their old and loyal consumers.

Question

Quizplus · Accepted Answer

Visualizing strategic group structure helps identify the major arenas of competition and groups firms within an industry based on similar competitive strategies and characteristics. This helps in analyzing the intensity of competition within different segments and understanding how firms can differentiate themselves to gain a competitive advantage. This information can be used to make strategic decisions such as target markets, pricing, and product positioning.

Why Is Visualizing Strategic Group Structure an Important Component of Competitive