Topic 4

Question 1

What is Strategic Group Analysis and how is it carried out?

Answer 1

It is used to analysis competition within an industry. It is based on the assumption that some organisations are more significant than others from a competitive point of view.

It should be carried out as follows:

1. Identify the two major competitive characteristics that differentiate organisations in the industry
2. plot individual organisations on a two dimensional graph using the two variables as the vertical and horizontal axes
3. vary the size of the circle for each organisation relative to its size of revenue in that industry