What is a group's strategic analysis?
companies that sell similar products or services to the same segment of the population are in a strategic group. For example, restaurants with good food and fast food restaurants are restaurants, but businesses would be in different strategic groups because they usually do not have the same customers. Similarly, fashion boutiques and great restaurants serve the same clients, but are in different strategic groups because businesses offer different products. The investigation of enterprises that operates in the same strategic group is called a strategic group analysis.
This type of analysis is often discussed in conjunction with the focus on the market. The focus on the market divides the consumer population into market segments that share characteristics such as the level of education, income, age and gender. Companies are investigating general preferences of market segments and then use these preferences for gears and services for specific market segments that operate strategic groups.
Objectives of strategic groupThe analyzes vary depending on several strategic group characteristics, including the size of the market, the diversity of the products offered, the geographical proximity of competing companies and where the products are sold. Branding, marketing, quality and price are also factors that need to be considered. For example, a company that serves consumers who value low prices could analyze to determine where competitors' products fall on the low price quality scale. The results of this group analysis can help companies to determine how to appreciate products and set quality control.
The company could use this analytical tool to identify competitors and determine how businesses in the group of competitions. Corporations that launch a new product could analyze to determine how to compete when entering the market. Creation Mapyz which businesses serve each market segment helps analystsm to discover any markets that existing strategic groups serve or do not serve.
The location and differentiation of products are two strategic marketing techniques that benefit from strategic group analysis. Location means ensuring that the product takes up a unique place in the mind of consumer and differentiation means that the product seems to be different from competing products. In both cases, the competitive framework may have the product to seem uniquely better than other products in the same strategic group.