How can strategic group analysis help managers in formulating a firm’s strategy?

Managers can benefit from strategic group analysis in my opinion in formulating firm’s strategies. It would depend on what kind of strategies the managers are aiming at. If the business manager is aiming at getting their business model restructured, they should do a strategic group analysis based on business models. They should group different businesses with similar businesses models and analyze them to learn from them and apply the concepts to their own business. It must be a carefully considered process as there is less error margin and if a business model is adopted that does not correspond to the nature of the business, the results can be disastrous.

Managers can also use strategic group analysis to do an analysis compared to their rival organizations. Again the manager has to make a decision on what would be the fundamental characteristic that would decide the formation of the strategic group.