5. procedures for constructing a strategic group map.
- identify the competitive characteristics that differentiate firms in the industry – such variables as price/quality range (high, medium, low), geographic coverage (local, regional, national, global), product- line breath (wide or narrow), and degree of service offered:
- plot the firms on a 2- variable map using pairs of these differentiating characteristics:
- assign the firms on a 2- variable map using pairs of these differentiating characteristics:
- draw circles around each strategic group, making the circles proportional to the size of the group’s respective share of total industry sales revenues.
- if certain firms are known to be trying to change their competitive positions on the map, then attaching arrows to the circles showing the targeted direction help clarify picture of competitive moves among rivals.