The concept of strategic groups is relevant to industry and competitive analysis because
A. the profit potential of firms in the same strategic group is usually very similar.
B. firms in the same strategic groups are rarely close competitors-a firm's closest competitors are usually in distant strategic groups.
C. competitive pressures tend to be weaker within strategic groups than across strategic groups.
D. strategic group maps help identify how each competing firm is positioned and the relationship to its closest competitors.
E. competition grows in intensity as the number and diversity of the strategic groups in an industry increases.
Answer: D
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