Strategic Groups within Industries

Strategic Groups within Industries are groups of companies within an industry that pursue a similar strategy. Strategic groups can generally be ranked in a rough hierarchical order built on two dimensions, price and performance. For example in the car manufacturing industry, the luxury car segment and the economy car segment are two separate strategic groups. When trying to reconstruct market boundaries, companies should look across strategic groups within their industry as buyers make trade-offs between offerings from different strategic groups and not solely on price. See Six Paths Framework.