An industry contains one strategic group when all sellers:
A) are subject to the same driving forces.
B) are placing about the same emphasis on various distribution channels.
C) use the same key success factors to differentiate their products.
D) pursue essentially identical strategies and have similar market positions.
E) pursue varying distribution channels and product attributes,and where their customer service attributes differentiate them in the marketplace.

Question

Quizplus · Accepted Answer

In a strategic group, all sellers pursue essentially identical strategies and have similar market positions, which distinguishes them from other groups in the industry. They compete based on the same key success factors, such as price, quality, and distribution, and are subject to the same driving forces, such as changes in technology or customer preferences. Option A, B, and E do not describe a strategic group as they suggest differences in key success factors, distribution channels, and customer service attributes, respectively.

An Industry Contains One Strategic Group When All Sellers