Strategic Group Mapping

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<ol>&NewLine;<li>&NewLine;<div align&equals;"justify">Analyzing the overall industry and indentifying those competitive characteristics that differentiate firms in the industry&period; Variables selected as axes for the map could be identified during the process of industry analysis&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Variables selected as axes for the map could be product-line breadth &lpar;wide&comma; narrow&rpar;&comma; price &lpar;high&comma; medium&comma; low&rpar;&comma; quality &lpar;high&comma; medium&comma; low&rpar;&comma; geographic coverage &lpar;local&comma; regional&comma; national&comma; global&rpar; etc&period; Using two-variable map&comma; plot all the firms in the industry&period; For example price &lpar;high&comma; medium&comma; low&rpar; can be taken on x axis whereas product-line breadth &lpar;wide&comma; narrow&rpar; on y axis and all the firms can be plotted accordingly&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">All the firms that fall in the same strategy space should be allocated to the same strategic group&period;<&sol;div>&NewLine;<&sol;li>&NewLine;<li>&NewLine;<div align&equals;"justify">Finally&comma; sketch circles around each strategic group&period; The size of the circles depends upon the share of a strategic group in the total industry sales revenue&period; <&sol;div>&NewLine;<&sol;li>&NewLine;<&sol;ol>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<h3 align&equals;"center">U&period;S&period; Restaurant Chain Industry Strategic Group Mapping<&sol;h3>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p align&equals;"center"><a href&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;10&sol;image14&period;png"><img style&equals;"border-right-width&colon; 0px&semi; display&colon; inline&semi; border-top-width&colon; 0px&semi; border-bottom-width&colon; 0px&semi; border-left-width&colon; 0px" title&equals;"image" border&equals;"0" alt&equals;"image" src&equals;"http&colon;&sol;&sol;mba-lectures&period;com&sol;wp-content&sol;uploads&sol;2010&sol;10&sol;image&lowbar;thumb14&period;png" width&equals;"500" height&equals;"344" &sol;><&sol;a> <&sol;p>&NewLine;<p> &&num;160&semi;<&sol;p>&NewLine;<p align&equals;"justify">There are always competitive pressures and driving forces which adversely affect the firms in strategic groups&period; Therefore&comma; some firms may try to shift to a more favorably situated group&period; This shifting is however difficult if the entry barriers of the target strategic group are high&period; An arrow can be attached to the circles showing the targeted direction of the firms which are trying to change their competitive positions on the map&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;