a set of firms emphasizing similar strategic dimensions and using a similar strategy
Strategic groups
The competition between firms within a strategic group is greater than the competition between a member of a strategic group and companies outside that strategic group.
intra-strategic group competition is more intense than is inter-strategic group competition
more heterogeneity is evident in the performance of firms within strategic groups than across the groups
The performance leaders within groups are able to follow strategies similar to those of other firms in the group and yet maintain strategic distinctiveness as a foundation for earning above-average returns.
The extent of technological leadership, product quality, pricing policies, distribution channels, and customer service are examples of strategic dimensions that firms in a strategic group may treat similarly.
The extent of technological leadership, product quality, pricing policies, distribution channels, and customer service are examples of strategic dimensions that firms in a strategic group may treat similarly.
membership in a particular strategic group defines the essential characteristics of the firm’s strategy
High mobility barriers, high rivalry, and low resources among the firms within an industry limit the formation of strategic groups.
after strategic groups are formed, their membership remains relatively stable over time.
