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Define strategic Group

Define the term strategic Group?

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Strategic group is defined as the set of business units or the firms which pursue the similar strategies with the similar resources. Classifying the firms within an industry into a set of strategic groups is extremely useful for proper understanding of the competitive environment. Since the structure and culture of the corporation’s reflect the types of strategies the organization follows. Companies or Business units belonging to the certain strategic group within the same industry tend to be tough rivals and tend be more similar to one another rather than to the competitors in other strategic group within the same industry.

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