The Concept of Strategic Groups Is Relevant to Industry and Competitive

question 51

Multiple Choice

The concept of strategic groups is relevant to industry and competitive analysis because

• A) firms in the same strategic groups are rarely close competitors-a firm's closest competitors are usually in distant strategic groups.
• B) strategic group maps help identify each company's market position and its closest competitors.
• C) competition grows in intensity as the number and diversity of the strategic groups in an industry increases.
• D) the profit potential of firms in the same strategic group is usually very similar.
• E) competitive pressures tend to be weaker within strategic groups than across strategic groups.

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