What is the definition of a strategic group?

the strategic group indicates to those companies in an industry that they implement the similar strategies to achieve their objectives and/or they use business processes can be considered in an strategic group. these concept is used to:

• identify the most direct competitors are and on what basis they compete.
• how is it possiblefor another organization to move from one strategic group to another.
• identify opportunities.
• Can also help identify strategic problems

A strategic group is a concept used in strategic management that groups companies within an industry that have similar business models or similar combinations of strategies. The number of groups within an industry and their composition depends on the dimensions used to define the groups. Strategic management professors and consultants often make use of a two dimensional grid to position firms along an industry's two most important dimensions in order to distinguish direct rivals (those with similar strategies or business models) from indirect rivals. Strategy is the direction and scope of an organization over the long term which achieves advantages for the organization while business model refers to how the firm will generate revenues or make money.