Although competition is most intense within a strategic group, explain why there is also rivalry among groups. Give examples

What will be an ideal response?


First, some of the strategic groups may appeal to overlapping customer segments. For example, no matter what their strategy, all major appliance manufacturers will go after the apartment and homebuilders segment. Second, the customers may not see much difference in the offers of different groups; they may see the little difference in quality between GE and Whirlpool. Finally, members of one strategic group might expand into new strategy segments. Thus, General Electric's Monogram and Profile lines of appliances compete in the premium-quality, premium-price line with Viking and Sub-Zero.

Business

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