What technique displays the different market or competitive positions rival firms occupy in the industry?

• A. Strategic group mapping
• B. Customer segmentation
• C. Portfolio analysis
• D. Competitive benchmarking

Answer: (A)

This question is about visualizing how rival firms occupy different positions in the market based on strategic choices. Strategic group mapping shows firms in an industry grouped by similar strategies and competitive dimensions (for example, price vs. quality, breadth of product lines, distribution channels, geographic focus). By plotting these groups on a two-dimensional map, you can see the different market positions rivals occupy, how tightly clustered firms are, and where there are gaps or mobility barriers between groups. That direct visualization of competitive positions across the industry is why this tool is the best fit.

Customer segmentation looks at how to divide the market into customer clusters, not how firms position themselves relative to each other. Portfolio analysis examines a single company's mix of businesses or products, focusing on internal resource allocation rather than external competitive positions. Competitive benchmarking compares specific performance metrics against rivals, which is about performance gaps rather than mapping strategic positions or clusters in the market.