Strategic Groups

Abstract

Тhe complexity of the business environment leads to its stratification for research purposes in three levels: the industry as a whole, strategic groups, and individual firms. This chapter concentrates on the middle-ground level, the strategic group. The analysis of strategic groups helps companies find a better position for their business on the market. By now, various techniques have been created to identify companies comprising a strategic group. Presented here are some of the most commonly used tools: the K-mean cluster analysis, the strategic profile of an industry, and the strategic themes matrix. To some degree, the usage of these methods is costly and thus problematic, especially for smaller companies. For this reason, the authors have developed an alternative tool, the “Profitability-Turnover Matrix Model” (PTMM). The technique is based on objective and freely available information. The focus is placed on the possibility of using the PTMM by entrepreneurial mid-sized companies.