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17 November, 05:58

Not all positions on a strategic group map are equally attractive because:

a. entry and exit barriers are different for each strategic group.

b. key success factors are usually quite different for differently positioned industry participants.

c. small strategic groups are always less profitable than large strategic groups.

d. across-group rivalry is strongest at the outer edges of the strategic group map.

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  1. 17 November, 08:16
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    industry driving forces and competitive pressures favor some companies or groups and hurt others and the profit potential of different strategic groups varies because of strengths and weaknesses in each strategic group's position.

    Explanation:

    Strategic groups in this context refers to a group of entities who impose a similar business model/strategy.

    Often times, simply by implementing similar strategies wouldn't necessarily give them similar results.

    There are other factors that influence the way people behave in the market

    For example

    Some companies have a certain reputation that becomes a driving force for the consumers to purchase their product. Even if these companies implemented a wrong business model, they wouldn't receive as much damage since their reputation will made customers constantly back to purchase their product.

    Another factors would be internet and technologies as a driving force. Often times, many people spread unjustified attacks toward a company that might ruin their sales.
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