Strategic Group Analysis Is Primarily Useful For

question 21

Multiple Choice

Strategic group analysis is primarily useful for:

• A)Identifying "blue ocean" opportunities
• B)Describing and understanding the strategic positioning of firms within an industry
• C)Identifying the strategies that are most conducive to profitability within an industry
• D)Identifying which strategic niches in an industry are least saturated and therefore have the greatest profit potential

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes towards covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of activity or volume of production in a business.

Pretax Income

The amount of income that a company earns before any taxes are deducted.

Variable Cost

Costs that vary in direct proportion to changes in the level of production or sales activity.