Strategic group mapping is a technique for analyzing a firm's position relative to competitors in an industry. It involves grouping similar businesses that pursue similar strategies, have similar resources, and business models. The key steps are to list similar firms, subgroup them, identify important customer variables, and map strategic group positions. This analysis helps understand pricing, identify direct and indirect competitors, determine one's industry position, develop appropriate strategies like defender or prospector, and achieve competitive advantage.

1. Course Instructor: Mr. Sanjeev Pradhan
Presented by : Divya Prabha Oli
MBA III Semester
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4/6/2022

2. Techniques of environmental
analysis
1. PESTLE
2. Industry Analysis
3. Scenario Planning
4. Strategic Group Mapping
5. External Factor Evaluation
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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.
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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
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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.
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6. Strategy Types (Business Level )
1) Analyzer : Focus on at least
two different market areas,
fulfill the demand gap.
2) Defender : Focus on
improving efficiency ,
relatively stable market,
seek profits and revenue.
Example : KFC
3) Prospector : Focus on
product innovation and
market opportunities.
4) Reactors : Lack a consistent
strategy , No specific
approach, adopts market
structure.
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7. Managerial Implications
1) Understand and determine pricing policy of
industry.
2) Helps to define the scope of firm’s competitors
(Positioning and identification of direct and indirect
customers )
3) Helps to find out one’s position in related sector or
field or market.
4) Helps to build different strategy types against
competitors ( like , analyzer , defender, prospector,
reactor )
5) Helps to achieve competitive advantage.
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