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 differentiate how rivals have positioned themselves in the marketplace.
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 mapping strategic groups are those that differentiate how rivals have positioned themselves in the market. This approach allows for the identification of groups that occupy similar competitive positions and can help in formulating competitive strategy. Financial variables alone may not be sufficient to explain competitive behavior or serve as axes for mapping strategic groups. Price may be a relevant variable to consider, but it is not essential or the only variable to be used. The primary objective of mapping strategic groups is not limited to profitability but gaining insights into the competitive landscape.

In Mapping Strategic Groups