In mapping, strategic groups
A) one strategic variable and one financial variable should be used as axes for the map.
B) it is important for the variables used as axes to be highly correlated.
C) the best variables to use as axes for the map are those that identify the competitive characteristics that delineate strategic approaches used in the industry.
D) it is important to use price as the variable for the vertical axis.
E) the primary objective is to determine which strategic groups are profitable and which are not.

Question

Quizplus · Accepted Answer

The best variables to use as axes for strategic group mapping are those that identify competitive characteristics distinguishable among the strategic approaches used in the industry. Highly correlated variables are not necessarily important, and price is not always the ideal variable to use for the vertical axis. The primary objective of strategic group mapping is not necessarily to determine profitability, but rather to identify and analyze the patterns of strategic variables among competing firms in the industry.

In Mapping, Strategic Groups