Strategic Groups in US Major Home Appliance industry

This graph inculcates three dimensions in it. One is Market segment, which ranges from discount segment through premium segment; second is competitive orientation, which varies from niche through global player; third is the combined market size of the group, which is determined by the size of the circle. 

According to this graph, Whirlpool, GE, Electrolux are put in one strategic group, which account for major chunk of the market. These firms pretend to be the closest competitor of one another. As, all of these three firms are having global presence and, overall, they are catering to discount through semi-premium segments of the market. 

Moreover, Maytag makes up its own strategic group as it is catering from middle  segment to super premium of the market but still owned a position of strong regional contender in terms of competitive orientation. Despite having its regional position, Maytag proved to be a strong contender in the market as it has taken the global firms head-on and has given them really tough time through its innovative products.

Haier and Bosch-Siemens are shown in one strategic group as these are global aspirants and tapping upscale markets in US industry (Average price of their products is $ 250 whereas price range of other low scale products is $ 180 – $ 230). 

Vikings and Sub-Zero are niche players, each producing one exclusive premium quality product line, makes up another strategic group.