080104 Lecture 4 Notes
Competitor Analysis
<1> Strategic Groups: How to Categorize Competitors
1. What is a Strategic Group?
A group of firms within a specific industry that pursue identical or similar strategies on strategic dimensions.
2. What is a Strategic Group Map?
A diagram that maps firms within an industry based on their use of strategic variables.
Key Frameworks:
- Industry analysis vs. firm-level analysis
- Resource-based view
- Value chain analysis
- Competitive positioning
Understanding competitors isn't about surveillance — it's about understanding the strategic landscape. Where are the crowded spaces? Where are the gaps? Which competitors are moving in which direction?
The most dangerous competitor isn't always the biggest — it's the one whose strategy is most similar to yours, because you're fighting for the same customers with the same value proposition.
