Strategic group mapping

MBA Presentation (Strategic Management)

1. Strategic Group Mapping Course Instructor: Mr. Sanjeev Pradhan Presented by : Divya Prabha Oli MBA III Semester 1 1/10/2022

2. Techniques of environmental analysis PESTLE Industry Analysis Scenario Planning Strategic Group Mapping External Factor Evaluation 2

3. Strategic Group Mapping Strategic group- a set of business units or firms that pursue similar strategies with similar resources and have similar business models. Strategic group mapping is a technique for looking at your firm’s position in the related sector, field or market. It is a tool for competition analysis. 3

4. Processes of Group Mapping List out similar firms related to industry Make sub-groups of similar category Identify two major variables preferred by customers Study the position of groups in relation to other competitors. Develop the future strategy. Strategy Types 4

5. For example : The restaurant industry can be divided into several strategic groups like fast food and fine dining based on the variables like preparation time , pricing , taste and service quality. 5

6. Strategy Types (Business Level ) Analyzer : Focus on at least two different market areas, fulfill the demand gap. Defender : Focus on improving efficiency , relatively stable market, seek profits and revenue. Example : KFC Prospector : Focus on product innovation and market opportunities. Reactors : Lack a consistent strategy , No specific approach, adopts market structure. 6

7. Managerial Implications Understand and determine pricing policy of industry. Helps to define the scope of firm’s competitors (Positioning and identification of direct and indirect customers ) Helps to find out one’s position in related sector or field or market. Helps to build different strategy types against competitors ( like , analyzer , defender, prospector, reactor ) Helps to achieve competitive advantage. 7

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