Members of a strategic group
A) compete directly with members of other strategic groups.
B) are affected by Porter's five competitive forces to the same degree that members of other strategic groups are affected.
C) follow a business model that is similar to that pursued by other companies in the group.
D) earn the same rate of return.
E) move easily to other groups as desired.

Question

Quizplus · Accepted Answer

Members of a strategic group follow a similar business model to that pursued by other companies in the group, which is what sets them apart as a group. While they are affected by Porter's five competitive forces, the intensity and degree of impact may vary within the group. They may also compete directly with some members of the same group, but not necessarily with all. The rate of return earned by members of a strategic group may also vary based on individual company performance. Moving between groups is not as straightforward and may require significant changes in business model and strategy.

Members of a Strategic Group