If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition.

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Strategic groupings help chart the future direction of company strategies. Arrows emanating from each strategic group can represent the direction in which the group (or a firm within the group) seems to be moving. If all strategic groups are moving in a similar direction, this could indicate a high degree of future volatility and intensity of competition. In the automobile industry, for example, the competition in the minivan and sport utility segments has intensified in recent years as many firms have entered those product segments.

If All Strategic Groups Are Moving in a Similar Direction