Industry Lifecycle

Question 1

Strategic groups

Answer 1

Organisations within the same industry or sector with
similar strategic characteristics, following similar strategies or competing on
similar basis.

Question 2

How to analyse the strategic group?

Answer 2

1. Who are my competitors?
2. What strategic opportunities are out there?
3. Is it possible to move from one strategic group to another?

Question 3

Strategic Group Mapping

Answer 3

A visualization can help you identify strategic spaces in the industry

Question 4

Market segment

Answer 4

Group of customers who have similar needs that are
different from customer needs in other parts of the market.

Question 5

Issues with Market Segmentation

Answer 5

1. Variation in customer needs:Focusing on customer needs that are highly distinctive from those typical in the market is one means of building a long-term segment strategy;
2. Specialisation within a market segment can also be an important basis for a
   successful segmentation strategy. This is sometimes called a ‘niche strategy’

Question 6

Blue ocean vs Red ocean

Answer 6

Blue - new market spaces where competition is minimised
Red - industries are already well
defined and rivalry is intense

Question 7

When thinking about strategic choices…

Answer 7

identify the opportunities and threats!

Question 8

How can you identify strategic gaps and opportunities within industries?

Answer 8

By using strategic group analysis and market segmentation analysis

Question 9

Red Ocean and Blue Ocean can be analysed by using Strategy Canvas. What is strategy canvas?

Answer 9

It contains the critical success factor and measures where each company belongs in the industry making it clear to see the gaps in the industry.