Question

discuss strategic groups?

Answer 1

Strategic Groups

Definition
Strategic group is a set of firms within same industry and following a same strategy. It is the concept which is used in strategic management that groups which have similar business models and strategies. An Industry can have more than one strategic groups.
The sub-groups that display similar behavior withing key strategic dimensions are known as strategic groups. They follow similar threats and the opportunities in competitive market.

Strategy group analysis
It helps to identify the organizations which have similar characteristics and have same competition in the market. They can be identified using two or three sets of characteristics.
Importance of strategic group analysis
- It helps to identify the strategic problems.
- Helps to identify the direct competitors

Examples of Strategic Groups
1) Restaurant industry is divided into several strategic groups which includes the fast-food and the fine-dining. They are based on certain variables such as the preparation time, pricing etc.

2) Airline industry is divided into several strategic groups which includes legacy carriers, cheap cost carriers and also international carriers.