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Strategic Groups

Strategic Groups Defined. A set of firms emphasizing similar strategic dimensions and using similar strategiesInternal competition between strategic group firms is greater than between firms outside that strategic groupThere is more heterogeneity in the performance of firms within strategic groups

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Strategic Groups

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    1. Strategic Groups

    2. Strategic Groups Defined A set of firms emphasizing similar strategic dimensions and using similar strategies Internal competition between strategic group firms is greater than between firms outside that strategic group There is more heterogeneity in the performance of firms within strategic groups

    3. Strategic Groups Strategic Dimensions Extent of technological leadership Product quality Pricing Policies Distribution channels Customer service

    4. Strategic Groups Strategic Dimensions (Continued) Size of firm Breadth of market Geographical distribution Level of vertical integration Profit/ Nonprofit

    5. Strategic Groups Definition Role of Mobility Barriers Implications Major competitors The strengths of forces differ The closer the strategic groups, the greater the competitive rivalry

    6. Strategic Groups as an Analytical Tool Help identify barriers to mobility that protect a group from attacks by other groups Helps a firm identify groups whose competitive position may be marginal or tenuous Help chart the future directions of firms strategies Help assess the implications of industry trends for the strategic group as a whole

    10. Competitor Analysis (pp. 59-61) Competitor Intelligence The ethical gathering of needed information and data that provides insight into: A competitors direction (future objectives) A competitors capabilities and intentions (current strategy) A competitors beliefs about the industry (its assumptions) A competitors capabilities

    11. Competitor Analysis Competitor Intelligence: The ethical gathering of needed information and data that provides insight into: What drives competitors Shown by organization's future objectives What the competitor is doing and can do Revealed in organization's current strategy What the competitor believes about the industry Shown in organization's assumptions What the competitors capabilities are Shown by organization's strengths and weaknesses

    12. Figure 2.3: Competitor Analysis Components

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