How can strategic group analysis help managers in formulating a firm’s strategy?
Strategic group analysis can help the managers in many ways. Strategic analysis can help the managers identify their real competitors and their actual strengths and weaknesses. The identification of the competitors is not limited to just a few characteristics but to many. For example a company manager may find out that his/her company has a business model similar to one company while its specialization is similar to another company. I think that the usefulness of strategic group analysis is a great tool to assess the current standing of a company amongst its competitors.
Strategic group analysis could assist the manager brainstorm their specialties and the ways they can be improved. Managers can assess the current position of their businesses in relation to different variables like pricing, quality and time constraints.
Strategic group analysis can also assist know the possibility of introducing a diversity in their product once the comparative analysis is carried out with other products. Strategic is a good tool to do an extent of geographical coverage analysis.