Pages: 98-106
Introduction. This paper analyzes the critical function of strategic grouping in determining competitive dynamics within industries. Strategic grouping, which refers to clusters of firms in an industry that share similar qualities and tactics, provides insights into competitive challenges and opportunities. The notion grew out of Michael S. Hunt’s PhD in 1972 and has become a basic paradigm in strategic management. According to Michael Porter’s concept, strategic groupings are formed when organizations utilize comparable tactics across important dimensions. Various criteria, including product or service offering, distribution channels, market segmentation, technology, brand image, customer segments, and cost structure, are used to delineate strategic groups. Typical forms of strategic groups include industry-based, market-based, product-based, resource-based, and geographic-based groups. Strategic group mapping emerges as an effective tool for visualizing industry competitiveness and identifying market positioning and competitive advantages. The procedure entails identifying important rivals, key competitive traits, and charting firms on a map using relevant factors.
Aim of the study. This paper analyzes the critical function of strategic grouping in determining competitive dynamics within industries. Strategic grouping, which refers to clusters of firms in an industry that share similar qualities and tactics, provides insights into competitive challenges and opportunities. The notion grew out of Michael S. Hunt’s PhD in 1972 and has become a basic paradigm in strategic management. According to Michael Porter’s concept, strategic groupings are formed when organizations utilize comparable tactics across important dimensions. Various criteria, including product or service offering, distribution channels, market segmentation, technology, brand image, customer segments, and cost structure, are used to delineate strategic groups. Typical forms of strategic groups include industry-based, market-based, product-based, resource-based, and geographic-based groups. Strategic group mapping emerges as an effective tool for visualizing industry competitiveness and identifying market positioning and competitive advantages. The procedure entails identifying important rivals, key competitive traits, and charting firms on a map using relevant factors.
