Mapping Strategic Groups

Strategic Mapping is a process to gauge the competition and relative position of an organization.

Market Perspective on Other Players

The concept, strategic group, used in strategic management, groups organizations within an industry that have similar set of strategies or similar business models.
To be profitable and make a difference in the market, take the top five other players in your strategic group. Make a list. Develop a profile for each, pinpointing the following −
  • What services are offered by them?
  • Which beneficiary group are they working with?
  • What is their probable impact?
  • What are their future plans? How the relationship with them lets you provide better services?
Apart from knowing these players, it is also very important to know about the marketplace the group players work in and how this could impact the future strategies. Think about the two most important factors driving success (or ensuring outcomes) for the users or beneficiaries of your organization or services. Following are examples of some factors −
  • The ability to access the service immediately
  • One stop service for all the needs
  • A tailored service depending on their unique needs
After picking the top two factors as applicable, draw up a matrix showing each factor as shown in the following example.

Example of Strategic Group Map

Strategic Group Map

Description of the diagram

The diagram shows a rectangle with four quadrants having 'Immediate access' on the y-axis and 'Tailored service' on the x-axis. Drawn in the appropriate position on the grid (with regard to these two factors) are the four other players. The size of the circle that represents each corresponds to their size in the marketplace.

Create your own strategic group map

Place all the other players in your organization’s strategic mapping group on this matrix. Draw a circle for each that offers idea about their relative sizes. Draw a circle for your organization there too. Are there any gaps? Are there any overlaps? Are there any options for change?

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