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 important differences among rival approaches.
B)The variables chosen as axes for the map do not have to be either quantitative or continuous. They can be discrete variables.
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 give different exposures to the competitive positioning relationships present in the industry structure.
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 because this would result in the strategic group map being less informative and less useful for identifying meaningful differences among firms in the industry. The other guidelines listed are appropriate for developing a strategic group map.

Which of the Following Is Not an Appropriate Guideline for Developing