Strategic Group Analysis Matrix
Strategic group analysis is an important tool used by various companies in different industries. It allows businesses to identify and analyze their competitors, as well as their positioning in the market. Additionally, it allows them to anticipate competitor’s moves and devise an effective strategy to stand out in the industry.
A strategic group analysis matrix allows companies to categorize their competitors according to their size, customer base, production process, products or services, and other important factors. The model then provides an overview of each group, allows companies to understand the differences between them, and clearly identify the major players in the industry.
For example, in the automotive industry, the strategic group analysis matrix would identify the differences between luxury car brands and general car brands. The company may then use this information to identify the customer base of each group and develop a strategy that better caters to that specific customer base.
Another example would be the airline industry. In this industry, the strategic group analysis matrix would help identify which airlines offer full-service flights versus those that offer low-cost flights. Again, the company can then use this information to develop a competitively advantaged strategy that better caters to the customer base of each segment.
The benefit for businesses that use a strategic group analysis matrix is that it provides a comprehensive view of the industry. This comprehensive knowledge can be used to identify weaknesses in their own strategy as well as leverage opportunities in the industry. Additionally, understanding the different segments within the industry can help companies identify potential partners or alliances that could have a beneficial effect on the business.
Overall, the strategic group analysis matrix is a helpful tool for companies in the various industries to better understand the dynamics of the market and their competitors. A well-developed matrix will be able to provide a comprehensive view of the industry, allowing businesses to effectively craft a strategy that will give them a competitive advantage in the market.
