Strategic groups maps: review, synthesis, and guidelines
Journal of Strategy and Management
ISSN: 1755-425X
Article publication date: 27 August 2019
Issue publication date: 18 October 2019
Abstract
Purpose
The purpose of this paper is to review, integrate and extend the methods for constructing and interpreting a strategic groups map. A strategic groups map is a visualization tool for capturing the essence of the competitive landscape in an industry: extent of competition between and among strategic groups, mobility barriers, available niches, positioning and industry dynamics.
Design/methodology/approach
This paper extends Porter’s (1980, pp. 152-155) original prescriptions by reviewing the research on strategic groups in the almost 40 years since Porter’s contribution and by amalgamation of practitioners’ uncodified practices.
Findings
The process for constructing a strategic groups map consists of five steps: first, define the industry; second, identify strategic characteristics that distinguish between groups; third, divide firms into groups; forth, select the two main dimensions of the map, and draw the map; and five, interpret the map. Specific instructions are provided for practitioners and academic researchers. Several examples of strategic groups maps illustrate this. Ways to interpret the maps are discussed, followed by limitations and conclusion.
Originality/value
Though the topic of strategic groups has been widely researched since the 1980s, there has been very little done in the area of mapping these groups, leaving scholars of businesses and industries with few directions for constructing strategic groups maps. To fill this gap, a structured process for constructing and interpreting a strategic groups map is provided.
Keywords
Citation
Meilich, O. (2019), "Strategic groups maps: review, synthesis, and guidelines", Journal of Strategy and Management, Vol. 12 No. 4, pp. 447-463. https://doi.org/10.1108/JSMA-03-2019-0046
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited