Strategic group is a group of firms in an industry following the same or a similar strategy in a given target market. For example, in the major appliance industry, GE and Whirlpool belong to the same strategic group. Each produces a full line of medium-price appliances supported by good service. In contrast, Sub-Zero and Viking belong to a different strategic group. They product a narrower line of higher-quality appliances, offer a higher level of service, and charge a premium price.
Definition