In industry analysis, which term denotes a cluster of rivals with similar competitive approaches and market positions?

In industry analysis, which term denotes a cluster of rivals with similar competitive approaches and market positions?

• A. Strategic cluster
• B. Strategic group
• C. Competitive set
• D. Market segment

Answer: (B)

Strategic groups capture clusters of rivals that pursue similar competitive approaches and hold comparable market positions. This term is the best fit because it emphasizes how competitors within the same group compete along similar dimensions—such as price, quality, features, distribution channels, and service—and occupy similar niches in the market, which shapes rivalry intensity and mobility between groups. Strategic cluster isn’t the standard label and can be used loosely, but the established concept is strategic group. Competitive set is a broader, less precise term for who competes with a firm and doesn’t inherently highlight the similarity of strategies. Market segment refers to groups of customers rather than groups of competitors.

Strategic groups capture clusters of rivals that pursue similar competitive approaches and hold comparable market positions. This term is the best fit because it emphasizes how competitors within the same group compete along similar dimensions—such as price, quality, features, distribution channels, and service—and occupy similar niches in the market, which shapes rivalry intensity and mobility between groups.

Strategic cluster isn’t the standard label and can be used loosely, but the established concept is strategic group. Competitive set is a broader, less precise term for who competes with a firm and doesn’t inherently highlight the similarity of strategies. Market segment refers to groups of customers rather than groups of competitors.