RESULT OBTAINED
Canonical method
Strategic groups: mapping competitive positions
What must be established
A useful analysis keeps its controls visible.
- 01
Choose axes that explain differences in model, not two variants of the same indicator.
- 02
Document the position of each actor and flag the missing data.
- 03
Identify the mobility barriers, the empty spaces and the plausible changes of group.
Decision reference
Make the next choice more explicit.
DECISION SUPPORTED
Which competitors follow similar models and which barriers limit movements between groups?
DELIVERABLE TO KEEP
A map of competitive positions and of possible mobility between groups.
NEXT ELEMENT TO EXAMINE
CompetitorsExplore →Choose discriminating axes
Price, integration, breadth of range, technology or geographic coverage may be suitable if they really differentiate the observed models. The axes must be independent and supported by the available data.
- Variance between actors
- Independence of the axes
- Available data
Plot with evidence
Each point must keep the source, the period and the positioning uncertainty. An unknown data point never becomes an average value.
- Value and unit
- Source
- Date
- Confidence
Analyse mobility
The decision bears on the possibility of changing group, the cost of the move and the likely reaction of the actors already in place.
- Mobility barrier
- Required capability
- Competitive reaction
DECISION ASSET
Map of groups and mobility barriers
Two discriminating axes position the actors, then the barriers between groups are documented.
Horizontal axis
- Input
- Strategic dimension
- Control
- Does it separate the models?
- Output
- X position
Vertical axis
- Input
- Independent dimension
- Control
- Does it avoid double counting?
- Output
- Y position
Group
- Input
- Close actors
- Control
- Do they share structuring choices?
- Output
- Competitive set
Mobility
- Input
- Capability, access, cost
- Control
- Which obstacle to the move?
- Output
- Barrier
- OECD Competition Assessment Toolkit (opens in a new tab)Institutional guide for assessing competitive constraints and market alternatives.
- Harvard Business School, The Five Forces (opens in a new tab)Institutional reference on industry structure, rivalry and barriers.
MOVE FROM ANALYSIS TO YOUR DECISION
Produce a testable decision mandate
MOVE FROM ANALYSIS TO YOUR DECISION
Produce a testable decision mandate
RETURN TO THE DECISION SYSTEM
See the canonical definition of marketing strategy→