Final answer:
The important strategic dimensions in mapping strategic groups include expenditures on research and development, expenditure on advertising and HR, product and service offerings, and cost structure.
Step-by-step explanation:
The important strategic dimensions in mapping strategic groups include:
- Expenditures on research and development: This dimension represents the amount of money a firm spends on activities aimed at developing new technologies, products, or services. It helps determine the firm's innovation capabilities and can influence its competitiveness in the market.
- Expenditures on advertising and HR: This dimension refers to the resources allocated by a firm towards promoting its products or services and managing its human resources. It can impact the firm's brand perception, market reach, and ability to attract and retain talented employees.
- Product and service offerings: This dimension pertains to the range and variety of products or services a firm offers to its customers. It affects the firm's target market, customer preferences, and competitive positioning.
- Cost structure: This dimension relates to the firm's cost of production and operations. It includes factors such as raw material costs, labor expenses, and overhead costs. The cost structure can influence a firm's pricing strategy, profitability, and competitive advantage.