CONSTRUCTING A STRATEGIC GROUP MAP
CONSTRUCTING A STRATEGIC GROUP MAP
STEP 1: Identify competitive characteristics that differentiate firms in an industry from one another
STEP 2: Plot firms on a two-variable map using pairs of these differentiating characteristics
STEP 3: Assign firms that fall in about the same strategy space to same strategic group
STEP 4: Draw circles around each strategic group, making circles proportional to size of group’s respective share of total industry sales