Presentation Transcript
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