Define strategic groups and describe their influence on firm

Define strategic groups and describe their influence on firms(150 words and no plagiarism,Use website to write in your own words).=>Strategic Management

Solution

Strategic groups is defined as group of companies with similar business strategies in terms of product offerings, pricing and value proposition.

Strategic groups impact firms in below ways:

- There is more intense competitive rivalry between companies in the same strategic group. If there is an intense competition in the companies in strategic group, it decrease company profitability and increases threat of competitors.

- If there is very high similarity in the product offerings and pricing of products in the strategic group, it increases competitive rivalry.

- Having intense rivalry in the same strategic group increase customers and suppliers bargaining power and decreases company pricing power.

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