Question

What are strategic groups? What criteria might be used to identify strategic groups in practice?
With reference to an industry of your choice, attempt to identify two or three strategic groups.

Answer 1

A strategic group is a set of those companies ,which are adopting similar strategy .These companies belong to similar industry, adopt similar business models, and similar set of principles of competition.

The. Criteria used to identify strategic groups within an industry is to conduct strategic group analysis (SGA).This analysis helps ro identify those organizations with similar strategic characteristics .

Factors considered by SGA to identify are-----:

*Pricing policy adopted

*Channels of distribution used

*Geographical areas covered

*Marketing ares covered

Quality of good or service

CRiteria of market segmentation

#For example -------Tele communication industry

There are various strategic groups of companies within this industry.

For example in india ---- Reliance communication.

Airtel

BSNL

Vodafone

Idea