Strategic group analysis is primarily useful for:
A)Identifying "blue ocean" opportunities
B)Describing and understanding the strategic positioning of firms within an industry
C)Identifying the strategies that are most conducive to profitability within an industry
D)Identifying which strategic niches in an industry are least saturated and therefore have the greatest profit potential

Question

Quizplus · Accepted Answer

Strategic group analysis helps in understanding the strategic positioning of various firms within the industry by identifying the groups of firms with similar strategic characteristics. This enables firms to identify their competitors, assess their competitive position, and develop appropriate strategic responses. Strategic group analysis does not directly identify blue ocean opportunities, strategies for profitability or the least saturated niches in the industry.

Strategic Group Analysis Is Primarily Useful For