CA Inter P6 · Chapter 11 · Question 8 of 11
A strategic group map of an industry is used to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Group together firms that follow similar competitive approaches and occupy similar market positions, to identify closest rivals
Explanation
A strategic group is a set of firms in an industry that follow similar strategies, such as similar price-quality ranges, distribution channels or product breadth. Plotting firms on two such dimensions shows who competes most directly with whom and where the competitive gaps are.
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