Abstract

Abstract A strategic group consists of those rival firms with similar competitive approaches and positions in the market. The identification of strategic groups within an industry enables the competitive structure of the industry to be redefined to compare strategies of various competitors for similarities and differences. Strategic groups' maps are based on the notion of mobility barriers. These are forces which deter or inhibit the movement of a firm from one strategic position to another and, more generally, the expansion of firms in one group to a position held by another group. Therefore, a mobility barrier is essentially a limitation on replicability or imitation. It acts like an entry barrier, but it acts for the group within the industry rather than for the industry as a whole. Strategic groups are thought to provide more sensitive explanation for variations in firm performance than industry structure alone.

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