Question

In mapping the positions of strategic groups in the industry's overall market space,

a. it is normally best to use geographic coverage (local, regional, national, global) as the variable for the vertical axis and product-line breadth (wide, narrow) as the variable for the horizontal axis.
b. one strategic variable and one financial variable should be used as axes for the map because this avoids selecting variables for the axes that are highly correlated.
c. using price as the variable for the vertical axis and product quality as the variable for the horizontal axis tends to produce the most revealing type of strategic group map.
d. the variable chosen as axes should be ones where big differeces exist among the rivals when the differ on both variables, the locations of the rivals will be scattered, thus showing how they are positioned differently.
e. it is important for the variables used as axes to be highly correlated

Answer 1

In mapping the positions of strategic groups in the industry's overall market space, using variables where big differences exist among the rivals is important.

Step-by-step explanation:

In mapping the positions of strategic groups in the industry's overall market space, the variable chosen as axes should be ones where big differences exist among the rivals. When the rivals differ on both variables, the locations of the rivals will be scattered, thus showing how they are positioned differently. Therefore, option d is correct.