If you have been managing your company, then you understand how much your competition shapes the market. No matter your industry, you are bound to have some strong competitors. A strategic group map is a diagram that allows you to see where your competitors stand. This way, you can extract invaluable insight that can help you develop your own strategy.
If you have been managing your company, then you understand how much your competition shapes the market. No matter your industry, you are bound to have some strong competitors. A strategic group map is a diagram that allows you to see where your competitors stand. This way, you can extract invaluable insight that can help you develop your own strategy.
In this article, you will learn more about the strategic group map, its purpose and types, as well as useful tips to draft one.
What Is a Strategic Group Map
Before you start drawing a strategic group map or getting a strategic group map creator, you must learn what a strategic group is. In essence, a strategic group consists of companies that have adopted similar business models.
Moreover, these companies follow similar strategies and they have put a claim on the same market share. However, their most important characteristic is that they are in a position to shape future market trends. This is the reason why this concept has become so important.
With this explanation in mind, we can say that the strategic group map is a visual representation of the companies that are within this group. To draft this diagram, you can use a strategic group map creator, where you can compare these companies based on specific information. Examples of data that are often used in a strategic group map are the following:
- Company size,
- Product features,
- Target market,
- Price,
- Market share,
- Perceived quality,
- Consumer target,
- Brand reputation.
In the strategic group map creator, you can choose which data you want to compare with your competitors. In reality, the strategic group map is rather flexible as it can reveal all sorts of insights that you can use to spot new opportunities.
Purpose of Strategic Group Map
At first, you might wonder why you should put the effort to get a strategic group map creator and draw this diagram. However, if you consider its purpose, you will soon realize that it is a tool that can help you identify the needs of your market. In more detail, the purpose of the strategic group map is the following:
- It is a visual representation of your competition – the most basic use of the strategic group map is that it displays in a visually clear way where each one of your competitors stands. By putting them in the strategic group map creator, you can recognize at a glance which are the strongest and which are your weakest competitors.
- It helps you identify similarities between your competitors – another reason why you should create a strategic group map is that it allows you to spot patterns among your competition. This way, you can identify similar strategies that seem to be working for the companies in your industry.
- It reveals windows of opportunity – depending on the data you use on your strategic group map creator, you might be able to spot some opportunities that will help your company’s growth. For example, you might find a new strategy, a new market, or a new consumer group that you might have missed.
- It highlights where the market is lacking – another great purpose of the strategic group map is that it will reveal where the market is lacking. When you study the data in your strategic group map creator, you will find the gaps that your competitors are leaving. Moreover, you will find out more about your target audience’s needs that remain unsatisfied.
- It might identify rising competitors – finally, the diagram from the strategic group map creator will also reveal the upcoming leaders in the industry.
Types of Strategic Group Map
Once you find the right strategic group map creator for you, there is nothing stopping you from creating a strategic group map. However, before you do that, you must consider the type of diagram that will cover your needs the most.
#1 Porter’s Five Forces
The first type of strategic group map is Porter’s five forces. This model is widely used to identify the forces that influence the market. These forces are:
- Industry competition,
- Power of suppliers,
- Power of customers,
- Potential of new companies,
- Threats the new products pose.
By studying the data on the strategic group map creator, you can spot all the strengths and weaknesses of the market. For this reason, this strategic group map is invaluable for every company.
#2 Industry Life Cycle
This particular model refers to the strategy that any business needs to employ depending on the phase it is currently in. In more detail, the four phases that the model introduces are:
- The introduction phase,
- The growth phase,
- The maturity phase,
- The decline phase.
By placing the data on the strategic group map creator you can evaluate the competitive strategy according to its phase.
#3 Macro-environmental Analysis
Another type of strategic group map uses the macro-environmental analysis. This particular type allows you to study all the external factors that influence a company, such as politics and technological advancements. The strategic group map creator will allow you to spot both opportunities and hazards that these elements might create.
Part 5. How to Draw a Strategic Group Map
If you get the right strategic group map creator, you can craft this diagram quickly and effortlessly. You can complete this process, by following these steps:
Step 1 – Make a List of Your Competitors
The first step to creating the strategic group map is to make a list of all of your competitors since they are the main component of the diagram. However, you can focus on your most significant competitors when you draw the diagram. This will enable you to create an easy-to-follow graph that reveals the insights that will help you.
Step 2 – Decide on the Data That You Wish to Study
As we have already mentioned, the strategic group map is a versatile diagram. This means that you can view the competitive landscape of your industry from various perspectives. This becomes possible by comparing your competitors with different types of data.
Step 3 – Create the Graph
The next step of the process is to actually draw the diagram. The strategic group map creator that you will use offers you templates and shapes that you can use. Select different colors for each competitor so that you can easily make the necessary comparisons. If you need to, you can also export the diagram.
Step 4 – Share and Analyze the Diagram
Finally, you can share this diagram with all the managers, employees, and stakeholders that you wish. Some tools will also support online collaboration that allows you to add as many collaborators as you need so that they can view the diagram and leave their feedback in real-time.
A One-stop Strategic Group Map Creator – Boardmix
Right now, you have access to the best strategic group map creator. Boardmix is an online tool that allows you to create effective strategic group maps in a few simple steps. The only thing you need to do is create a new whiteboard and add all the elements to the diagram. Or if you want to do it more quickly, you can use the ready-made template directly.
In addition to this, the platform helps you collaborate with your team members and employees through real-time comments and even video conferences. This way, you can analyze the strategic group map to find the right strategy for you. Now, it's also equipped with powerful AI features, which can implement your creativity a lot.
The Bottom Line
There is no denying that your company is affected by its competitors. Now, you can use this competition to your advantage by creating a strategic group map. Boardmix is the best tool to draw this diagram to make the most out of it. Try the platform today to help your company grow.
