This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Strategic Group Analysis [SGA]) is a 28-slide PPT PowerPoint presentation slide deck (PPTX), which you can download immediately upon purchase.
Competitive Analysis is a strategic assessment process through which an organization identifies and evaluates the strengths, weaknesses, opportunities, and threats of its competitors. The objective is to help the organization develop strategies that enhance its market position, optimize its products or services, and capitalize on opportunities while minimizing risks.
This PowerPoint deck delves into the concept of Strategic Group Analysis (SGA), a powerful strategic management tool used to identify and evaluate clusters of organizations within an industry that pursue similar business models or strategies.
By adopting the SGA approach, organizations can uncover essential market insights, assess competitive forces, and plan for success. SGA implementation follows a 5-step process:
1. Identify Key Industry Characteristics – The foundation of SGA lies in recognizing the critical characteristics that differentiate firms within an industry. These characteristics highlight the elements by which organizations compete and distinguish themselves, allowing them to be categorized into strategic groups.
2. Categorize Rivals Based on Key Characteristics – This step involves constructing a classification system to highlight similarities and differences among organizations.
3. Develop a Strategic Group Map – After rivals are categorized, they can be placed on a strategic group map. This map visually represents the relative positioning of organizations, using chosen dimensions as the axes.
4. Evaluate Competitive Dynamics – This stage focuses on understanding how different rivals and strategic groups interact within the industry. This analysis aims to uncover the nature of competition within individual groups and between various groups.
5. Ascertain Opportunities and Threats – The last step of SGA involves leveraging insights from the strategic group map to identify areas for competitive advantage and prepare for challenges that may impact an organization's position.
Each of these steps is discussed in detail. Through SGA, organizations can pinpoint strategic groups within an industry, understand competitive forces, and chart paths to growth.
This PowerPoint presentation on Strategic Group Analysis also includes some slide templates for you to use in your own business presentations.
This PPT slide outlines a systematic approach to categorizing rivals based on key characteristics, a critical step in strategic group analysis. It emphasizes the importance of developing a classification system that highlights similarities and differences among competitors. The process begins with defining specific groups for each strategic dimension identified, such as pricing or distribution. For instance, pricing categories could range from "budget" to "premium," while distribution might include "online only" or "mixed channels."
The next phase involves evaluating each rival and assigning them to the relevant categories. This requires a nuanced understanding of the industry, as some companies may align closely with a single category, while others might straddle multiple categories. The complexity of the industry plays a significant role in how many strategic groups can be identified. Simpler industries may yield only a few groups, whereas more intricate sectors are likely to display a broader range of strategic dimensions.
Finally, once categorization is complete, distinct groups will emerge, showcasing companies with similar strategic characteristics. For example, firms classified under "premium pricing" and "high quality" could form one group, while those in the "budget pricing" and "basic quality" category might represent another. This structured approach not only aids in understanding the competitive dynamics, but also informs strategic decision-making for positioning and resource allocation.
This PPT slide titled "Analyzing competition within and between strategic groups involves several essential elements" outlines key factors for evaluating competitive dynamics as part of the Strategic Group Analysis (SGA) implementation process. This stage is crucial for organizations aiming to understand the interactions between different rivals and strategic groups within their industry.
The slide details several essential elements to explore. First, Intra-Group Competition emphasizes the direct competition among firms within the same strategic group. It highlights the importance of assessing factors like the number of competitors, market power, and growth potential to gauge competitive intensity.
Next, Inter-Group Competition addresses rivalry between different strategic groups. This section points out that understanding these dynamics is vital for anticipating market shifts and recognizing emerging competitive pressures.
Mobility Barriers are also discussed, indicating that factors such as capital requirements and technological needs can restrict a company's ability to shift between strategic groups. Recognizing these barriers is essential for assessing the feasibility of strategic changes.
The slide also mentions Market Shifts and Trends, which involves tracking evolving consumer preferences and legal changes that can redefine competitive positioning.
Performance Benchmarks Across Groups is another critical factor, encouraging organizations to compare metrics like profitability and market share to identify which strategic groups are thriving or underperforming.
Lastly, the Impact of Potential Entrants and Substitute Offerings highlights the disruptive potential of new entrants and substitutes on competitive dynamics. Understanding these threats is crucial for organizations to grasp their positioning within the broader industry context.
By analyzing these factors, organizations can gain a clearer understanding of their competitive positioning and refine their strategic approach accordingly.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
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