Strategic Groups

Strategic groups are clusters of companies within an industry that share similar strategies, resources, or market positions. They often compete more directly with each other than with firms outside their group because they target similar customers, offer comparable products, or operate in similar ways. Understanding these groups helps identify competitive dynamics and opportunities within an industry. For example, in the car industry, luxury brands form one strategic group, while economy brands form another, each with distinct approaches to pricing, quality, and marketing.