Strategic Group Map
Visualize competition in an industry
The Strategic Group Map is a tool for visualizing competition in an industry. It involves mapping the industry's strategic groups and analyzing their positions and movements. This framework can help businesses identify opportunities and threats in their industry and develop a competitive strategy.
- Industries are composed of strategic groups
- Strategic groups can be mapped and analyzed
- Understanding the strategic groups in an industry is crucial for developing a competitive strategy
- Identify the industry's strategic groupsAnalyze the industry's companies and identify the strategic groups. This will help you understand the competitive landscape of the industry.Pro tipUse tools such as cluster analysis to identify the strategic groupsWarningBe aware that strategic groups can change over time, so it's essential to regularly update your analysis
- Map the strategic groupsUse the Strategic Group Map to visualize the strategic groups and their positions. This will help you understand the competitive relationships between the companies in the industry.Pro tipUse tools such as multidimensional scaling to map the strategic groupsWarningBe aware that the map is not static, so it's essential to regularly update your analysis
- Analyze the strategic groupsUse the Strategic Group Map to analyze the strategic groups and their movements. This will help you identify opportunities and threats in the industry and develop a competitive strategy.Pro tipUse tools such as scenario planning to analyze the strategic groupsWarningBe aware that the analysis is not a one-time event, but rather an ongoing process
IBM used the Strategic Group Map to analyze the computer industry and identify opportunities and threats. This helped the company to develop a competitive strategy and achieve significant success.
The Strategic Group Map was developed by Michael E. Porter as a way to visualize competition in an industry. It is based on the idea that industries are composed of strategic groups, which are groups of companies that pursue similar strategies.