Sam Lee Mohan, CEO & Founder at GBC, 2 min read
Using Strategic Group Maps to Assess the Market Positions of Key Competitors
Strategic Group Maps is a technique for displaying the different market or competitive positions that rival companies occupy in the industry. A strategic group consists of those industry members with similar competitive approaches and positions in your market. Companies in the same strategic group can resemble one another in a variety of ways. For example, they may have comparable product-line breadth, emphasise the same distribution channels, depend on identical; technological approaches, or offer buyers essentially the same product attributes or similar services and technical assistance. An industry contains only one strategic group when all sellers pursue essentially identical strategies and have similar market positions. At the other extreme, an industry may contain as many strategic groups as there are competitors when each rival pursues a distinctively different competitive approach and occupies a substantially different market position. The number of strategic groups in an industry and their respective market positions can be displayed on a strategic group map.
When you use StratPlan in your business, you are empowered to use strategic group maps to assess the market position of key competitors in under 3 minutes; making it simple for you to display the different market or competitive positions that rival companies occupy in your industry. There are just a few steps when evaluating your five forces of competition using StratPlan…6 to be exact.
- Click Strategic Group Maps in the navigation screen.
- Click “Add New” and Type in the name of your first competitor.
- From the drop down menu, Price/Perceived Quality & Image, select Low, Medium or High.
- From the drop down menu, Geographic Market Scope, select Local, Regional, National or International.
- Insert an estimated percentage (%) in the box for Market Size..
- Click “Add New” to insert your next competitor and repeat steps 2 to 5. Click “Add New” to insert as many competitors as you wish.
- Click save
That’s it…you’re done! In under 3 minutes.
Here’s how it works…
6 steps. All you need to do is Strategic Group Maps, select from the drop-down menus and add an estimated market share. Here’s a secret too. You don’t even need to click Save to save your plan. StratPlan automatically saves your changes.
P.S. Curious about other features to help in the strategy making process? Go to our useful help videos or send us a message, we’d love to help.
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