What is Strategic Group Mapping??

• A strategic group map is a tool that helps businesses visualize the

competitive positions of their industry rivals.
• A group of rivals with similar strategies and business models are
known as a strategic group.
• Businesses that are in the same strategic group can have two or
more similar characteristics (i.e. similar product prices, available
in the same geographic areas, and identical technological
approaches).
• It’s constructed in the form of a graph, by assigning variables to
each axis.
 Purpose Of Strategy Group Mapping

• It helps in shaping the moves of an organization by identifying

the strategic direction of direct rivals in the industry.
• It helps an organization find alternate paths or solutions by
identifying strategies used by organizations of other strategic
groups.
• It helps in discovering untapped opportunities in the market
by identifying areas with little or no competition. 
 How To Construct Strategic Group Maps
 Identify Main Competitors

• by looking into their objectives, future strategies, products and services,

weaknesses, strengths
 Identify Strategic Characteristics

• can be differentiated based on characteristics such as company size, cost position,

brand image, product quality
 Plot The Organizations On The Graph

• Plotting the two variables of the axes on the map and assign a position to each
organization
 Interpret The Map

• Interpreting the map will help improve strategies as well as identify other positions
in the market that can provide a competitive advantage