Strategic Management - Characteristics And Effectiveness of Strategic Groups

Strategic groups are a group of similar firms/business within an industry having the same business models and strategies. For example, the restaurant industry having fast food, fine dining, etc.

1. Strategic groups help to identify the direct competitors and competitive environment.

2. Likely or possibility of one strategic group moving to another group within an industry.

3. Identify strategic problems.

4. Strategic groups help in identifying opportunities.

Therefore, Strategic groups help to understand the opportunities, strategic problems, possibility of moving from one group to another, and identify its direct competitors.

Strategic groups characteristics can also be a way to understand its effectiveness.

1. Market Segments

2. Product/Services Diversity

3. Product/Service Quality

4. Pricing

5. Distribution Channels

6. Geographical Expansion

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