Analysis of strategic groups

In the analysis of strategic groups in the market, the position of the company compared to its competitors is classified. The adequate criteria of demarcation for the establishment of strategic groups in the relevant market are determined via the matrix shown in Fig. 2.6. The most adequate criteria can be chosen and placed within the matrix. The same can be done for the competitors. The matrix shows the relationship of two criteria in order to place them within the product groups. It is therefore possible to evaluate one s own strategy compared to the strategy of competitors. 

Figure 2.7 shows an exemplary analysis of strategic groups within the automotive industry. Here the two different demarcation variables which best distinguish the business strategy and competitive position of the company, product range and geographical scope, are used for the analysis. 

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