Strategic group mapping is a technique for displaying the different competitive positions that rival firms occupy in the industry. It is a significant area with the help of which firms can simply analyze where they essentially need betterments and with the help of this firms do well and gain well.
Strategic groups are conceptually defined clusters of competitors that share similar strategies and therefore compete more directly with each other than other firms in the same industry. It can be from any type of business and depending on the industry, are defined within a dimensional construct.
Below mentioned are some of the main issues related to strategic group mapping:
- Helps in identifying barriers to entry and exit,
- Helps in identifying strategic areas with the help of which benefits can be easily gained,
- Helps in identifying best firms in the industry,
- Helps in rectifying major rivals.