Strategic Space

Today I have been...

Reading about the concept of Strategic Space

Why?

Required Reading

So What?

Strategic space is the application of the strategic group concept by mapping strategies against the moving target of changing industry structures. (McGee and Segal-Horn 1990, 1992). These spaces are areas of opportunity which are not yet available but whose potential under developing conditions becomes feasible.

You probably already concentrate on improving your competitive position within your current strategic group. But if you can figure out what factors affect buyers decisions to trade up and down strategic groups, you may have the key to create a new market space. The key success factors (Unit 2 S4 P59) that satisfy buyer demand in any market space are what customers expect you to meet as a minimum in respect of the characteristics of a product/service provider in that space, for example (but not limited to) price, functionality, quality, safety, delivery.

The KSFs are the minimum entry requirements to a particular market; "are those elements in the industry which are considered important by customers."

Grant (2005) Identifies KSFs by also considering competition in addition to assessing customer expectations. See diagram p60 U2S4 and also powerpoint.

Normally, the KSF change over the industry lifecycle. Many KSF may co-exist, where the KSF of the different market segments overlap.

new strategic space can be created by considering whether the KSF of existing strategic groups are likely to change or whether new KSF could be created that have not been offered before

A strategic groups map tells us which space in an industry map is occupied, but importantly it also shows which is empty. Each space can be thought of to show a possible alternative strategy utilising a possible alternative set of resources. With industry conditions in mind, you can consider if any of these alternative unoccupied spaces can be occupied.

The strategic groups map can be turned into a grid (p61 U2S4). Just because a space exists, it doesn't mean it is viable.

How will I use it?

 Things to remember:-

A space may be unoccupied because it is not viable.
May be unoccupied for institutional, historical, cultural, structural, regulatory, market or technological reasons which may or may not still apply.