Members of a strategic group:
A) compete only with members of other strategic groups.
B) are affected by Porter's five competitive forces in the same way and to the same degree as the members of other strategic groups.
C) follow a business model that is similar to that pursued by other companies in the group.
D) face no threat of product substitutes from other members.
E) move easily between groups without barriers.

Question

Quizplus · Accepted Answer

Members of a strategic group follow a similar business model to other companies in the group. This is what distinguishes them as a unique group in the industry. They may compete with other strategic groups, but their business models and strategies will differ. Members of a strategic group can also face similar or different threats from Porter's five competitive forces, depending on their specific industry and market conditions. However, they are not immune to product substitutes from other members, and moving between groups may not be easy due to the differences in business models and strategies.

Members of a Strategic Group