Strategic Group Analysis

Strategic Group Analysis is a method used to understand how companies within the same industry compete against each other. Companies are grouped based on similar characteristics, such as pricing, products, or target customers. By analyzing these groups, businesses can identify their direct competitors, opportunities, and threats. This helps companies develop strategies that leverage their strengths, improve weaknesses, and position themselves effectively in the market. Essentially, it’s a way to see the competitive landscape more clearly, allowing firms to strategize better in order to succeed.