What term refers to a cluster of industry rivals that have similar competitive approaches and market positions?

• A. Strategic cluster
• B. Market segment
• C. Competitive set
• D. Strategic group

Answer: (D)

The term being tested is strategic group: a cluster of rivals within an industry that pursue similar competitive approaches and target similar market positions. This concept matters because firms in the same strategic group tend to compete directly with each other—fighting over the same customers, price ranges, product features, distribution channels, and geographic focus. Recognizing these groups helps map where competition is most intense, understand mobility barriers between groups, and spot opportunities to reposition or differentiate. It’s the best fit because it specifically describes how firms with comparable strategies and market bets line up against one another, rather than focusing on customers (market segment) or on which firms you benchmark against (competitive set).