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Published on November 21, 2007

Author: Alfanso

Source: authorstream.com

Strategic Groups:  Strategic Groups Strategic Groups Defined:  Strategic Groups Defined A set of firms emphasizing similar strategic dimensions and using similar strategies Internal competition between strategic group firms is greater than between firms outside that strategic group There is more heterogeneity in the performance of firms within strategic groups Strategic Groups :  Strategic Groups Strategic Dimensions Extent of technological leadership Product quality Pricing Policies Distribution channels Customer service Strategic Groups:  Strategic Groups Strategic Dimensions (Continued) Size of firm Breadth of market Geographical distribution Level of vertical integration Profit/ Nonprofit Strategic Groups:  Strategic Groups Definition Role of Mobility Barriers Implications Major competitors The strengths of forces differ The closer the strategic groups, the greater the competitive rivalry Strategic Groups as an Analytical Tool:  Strategic Groups as an Analytical Tool Help identify barriers to mobility that protect a group from attacks by other groups Helps a firm identify groups whose competitive position may be marginal or tenuous Help chart the future directions of firms’ strategies Help assess the implications of industry trends for the strategic group as a whole Slide7:  Proprietary Group Merck Pfizer Eli Lilly Generic Group Marion Labs Carter Wallace ICN Pharmaceuticals R & D Spending Prices Changed Low High High Slide8:  A Strategic Group Map for the Automotive Industry (1980) Product Line Diversification Price/Quality Standards Low Medium High Special Prod. Mass Prod./Limited Mass Prod./Full Ford Chrysler GM VW Jaguar Rolls Royce BMW Saab Volvo Toyota Mercedes Italian Nissan Honda Slide9:  A Strategic Group Map for the Automotive Industry (1990) Product Line Diversification Price/Quality Standards Low Medium High Special Prod. Mass Prod./Limited Mass Prod./Full Ford Chrysler GM VW Jaguar Rolls Royce BMW Saab Volvo Toyota Mercedes Italian Nissan Honda Infiniti Lexus Hyundai Mazda Competitor Analysis:  Competitor Analysis Competitor Intelligence The ethical gathering of needed information and data that provides insight into: A competitor’s direction (future objectives) A competitor’s capabilities and intentions (current strategy) A competitor’s beliefs about the industry (its assumptions) A competitor’s capabilities Competitor Analysis Components:  Competitor Analysis Components

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