Framework library
Strategic group mapping
How to use it
Plot competitors on two dimensions that shape buying or cost. Look for groups and the capabilities or investments required to move between them.
Worked example
Map hotels by service depth and dependence on intermediaries. Ask which investments would make a direct-booking model credible.
Common pitfall
Axis selection can create artificial clusters. Validate the groups with actual customer switching.
- Frame the questionWho can change the terms on which this business earns a margin?
- What to deliverIdentify the mechanism, who benefits from it and the strongest substitute or competitor response.