Appendix 4: Strategic Group Mapping Analysis Instrument

Identify the industry, market, and market segment.

1. Identify the industry, market, and market segment under analysis.
2. Place this in the instrument.

Analyze data about the strategic group.

Analysis is the process and result of examining all the data available for the case and identifying and classifying all the data for each category in a strategic management framework.

Create a strategic map.

1. Identify the most important dimensions that characterize the strategic groups. These are company commitments that are both difficult and costly to reverse, including but not limited to research and development investment, the use of technology and technology innovation, product differentiation, distribution channels, and even customer service. This varies by industry.
2. From this list of the most important dimensions that characterize the strategic groups, choose two dimensions.
3. Map these two dimensions. Use the x-axis (horizontal) for one dimension, with low on the left and high on the right. Use the y-axis (vertical) for the other dimension, with low at the bottom and high at the top. Price and product line are dimensions that are commonly paired on x- and y-axes.
4. Graph the firms in the strategic group considering these two dimensions using bubbles.
5. Indicate the market share of each firm through the size and shape of its bubble.
6. The map in the instrument below is for illustrative purposes. Choose the two dimensions, and add the number and size of company bubbles as indicated by the analysis.

Interpret the analysis.

Interpretation is the process and result of examining the analysis to identify and explain relationships in the analysis and underlying root causes of the situation. Interpretation is not found in the case or company research. Interpretation applies critical thinking to the analysis conducted so far. Answer only those questions that add value to the overall process of working with the strategic group framework to analyze the strategic group. Interpretation begins to narrow the focus.

1. Examine the analysis in the strategic group map.
2. Identify and explain whether, how, and in what ways the information in the analysis is related.
3. Identify and explain underlying root cause(s) of the situation.
   1. What may be causing the information identified in the analysis?
4. Place the interpretation in the instrument below in the section titled “Interpretation.”

Evaluate the analysis and interpretation.

Evaluation is the process and result of examining the analysis and interpretation to identify and explain the meaning of the information to the company by considering its impact, relevance, and importance to the company and by identifying the company’s current, potential, or needed assets, organizational capacity, and managerial ability that may support or mitigate the areas of highest impact, importance, and relevance for the firm. Like interpretation, evaluation is not found in the case or company research. Evaluation involves applying critical thinking to the analysis and interpretation conducted so far. Answer only those questions that add value to the overall process of working with the strategic group framework to analyze the strategic group. Evaluation continues to narrow the focus.

1. Examine the analysis and interpretation.
2. Identify and explain how the information in the analysis and interpretation impacts the company.
3. Identify and explain how the information in the analysis and interpretation is relevant to the company.
4. Determine in what ways the information in the analysis and interpretation is important to the company.
5. Determine the company’s current, potential, or needed assets, organizational capacity, and managerial ability that may support or mitigate the areas of highest impact, relevance, and importance for the firm.
6. Place the evaluation in the instrument below in the section titled “Evaluation.”

Recommend action to the firm.

1. Make recommendations to the company to leverage opportunities in the strategic group.
2. Make recommendations to the company to mitigate threats in the strategic group.
3. Place the recommendations in the table below in the section titled “Recommendations.”

Analysis Instrument

Strategic group mapping
Identify the industry, market, and market segment.
The industry is: The market is: The market segment is:
Analysis
Interpretation
Answer only those questions in the “Interpret the Analysis” section above that add value to the overall process of working with the strategic group to analyze the competitive environment.
Interpretation:
Evaluation
Answer only those questions in the “Evaluate the Analysis and Interpretation” section above that add value to the overall process of working with the strategic group to analyze the competitive environment.
Evaluation:
Recommendations
1. What do you recommend to the company to leverage opportunities in the industry environment? 2. What do you recommend to the company to mitigate threats in the industry environment?
Recommendations: