The Factors That Are Important to Focus on When Mapping

question 47

Multiple Choice

The factors that are important to focus on when mapping strategic groups include:

• A) Identifying the top competitive factors in your market, such as expenditures on research and development, pricing, distribution channels, and customers.
• B) Choosing two key dimensions from these factors for the horizontal and vertical axes, plotting your rivals along these axes, and looking for differences among the competition.
• C) Analyzing the firms that are closest to your organization on the map, because they will give your firm the strongest rivalry.
• D) All of these.

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Definitions:

Bottom Quintile

The lowest fifth or 20% segment of the population in a statistical distribution, often used in reference to income levels.

Income

Earnings received by an individual or business for their labor, investments, or through the sale of goods or services.

Lorenz Curve

Data plotted to show the percentage of income enjoyed by each percentage of households, ranked according to their income.

Perfect Income Equality

A theoretical economic condition where all individuals or households earn exactly the same income, leading to absolute equity in income distribution.