What is strategic group analysis in BSG?

Strategic group analysis in the context of the Business Strategy Game (BSG) focuses on identifying and analyzing companies within an industry that compete in similar ways or follow similar strategies. This involves grouping firms that share similar characteristics, such as product offerings, pricing policies, market segments, and overall competitive approaches.

By understanding these groups, a company can better determine its competitive positioning in relation to peers, highlighting both direct and indirect competitors. This analysis helps firms identify what strategic moves are likely to be most effective based on the behavior and performance of similar companies within the same group. It is essential for developing tailored strategies that will lead to competitive advantages in the marketplace.

The other options do not capture the essence of strategic group analysis. Evaluating employee efficiency, measuring customer satisfaction, and analyzing production techniques are all important business functions, but they do not focus on the comparative competitive dynamics and strategic interactions among similar firms that strategic group analysis seeks to address.