Question

Which of the following statements about strategic groups is FALSE? Select one: a. Strategic groups help chart the future directions of firm strategies. b. Two assumptions are made: (1) no two firms are totally different, (2) no two firms are exactly the same. c. Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups. d. Strategic groups are helpful in thinking through the implications of each industry trend for the group as a whole.

Answer 1

C) Strategic groupings are of little help to a firm in assessing mobility barriers that protect a group from attacks by other groups.

Step-by-step explanation:

To divide an industry into strategic groups is very useful because you can segregate those competitors that really represent a threat to your company and can be considered direct rivals, with those competitors that do not share many similarities with your company and therefore cannot be considered direct rivals.

This is the first step when you try to develop the company's strategy because you need to know who you are competing against and how they are competing against you.

It is like trying to find a place when no one has given you an address, before you start looking for solutions, you must know what to look for.

Answer 2

The correct option is C

Step-by-step explanation:

A strategic group is a concept used in strategic management that groups companies within an industry that have similar business models or similar combinations of strategies. The number of groups within an industry and their composition depends on the dimensions used to define the groups.