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Strategic groups maps: review, synthesis, and guidelines

Strategic groups maps: review, synthesis, and guidelines The purpose of this paper is to review, integrate and extend the methods for constructing and interpreting a strategic groups map. A strategic groups map is a visualization tool for capturing the essence of the competitive landscape in an industry: extent of competition between and among strategic groups, mobility barriers, available niches, positioning and industry dynamics.Design/methodology/approachThis paper extends Porter’s (1980, pp. 152-155) original prescriptions by reviewing the research on strategic groups in the almost 40 years since Porter’s contribution and by amalgamation of practitioners’ uncodified practices.FindingsThe process for constructing a strategic groups map consists of five steps: first, define the industry; second, identify strategic characteristics that distinguish between groups; third, divide firms into groups; forth, select the two main dimensions of the map, and draw the map; and five, interpret the map. Specific instructions are provided for practitioners and academic researchers. Several examples of strategic groups maps illustrate this. Ways to interpret the maps are discussed, followed by limitations and conclusion.Originality/valueThough the topic of strategic groups has been widely researched since the 1980s, there has been very little done in the area of mapping these groups, leaving scholars of businesses and industries with few directions for constructing strategic groups maps. To fill this gap, a structured process for constructing and interpreting a strategic groups map is provided. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Strategy and Management Emerald Publishing

Strategic groups maps: review, synthesis, and guidelines

Journal of Strategy and Management , Volume 12 (4): 17 – Oct 18, 2019

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1755-425X
DOI
10.1108/jsma-03-2019-0046
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper is to review, integrate and extend the methods for constructing and interpreting a strategic groups map. A strategic groups map is a visualization tool for capturing the essence of the competitive landscape in an industry: extent of competition between and among strategic groups, mobility barriers, available niches, positioning and industry dynamics.Design/methodology/approachThis paper extends Porter’s (1980, pp. 152-155) original prescriptions by reviewing the research on strategic groups in the almost 40 years since Porter’s contribution and by amalgamation of practitioners’ uncodified practices.FindingsThe process for constructing a strategic groups map consists of five steps: first, define the industry; second, identify strategic characteristics that distinguish between groups; third, divide firms into groups; forth, select the two main dimensions of the map, and draw the map; and five, interpret the map. Specific instructions are provided for practitioners and academic researchers. Several examples of strategic groups maps illustrate this. Ways to interpret the maps are discussed, followed by limitations and conclusion.Originality/valueThough the topic of strategic groups has been widely researched since the 1980s, there has been very little done in the area of mapping these groups, leaving scholars of businesses and industries with few directions for constructing strategic groups maps. To fill this gap, a structured process for constructing and interpreting a strategic groups map is provided.

Journal

Journal of Strategy and ManagementEmerald Publishing

Published: Oct 18, 2019

Keywords: Industry analysis; Strategic groups; Competitive landscape; Strategic groups map

References