Strategic Group Mapping

Strategic Group Mapping

According to Michael Porter whom developed the concept of a “strategic group” it is used in strategic management in order to group companies within an industry which share similar business models or combinations of strategies. The concept’s main focus is to aid in identifying direct competitors and how they directly compete with the firm. Strategic mapping can also be used to identify opportunities. In 2006, China’s government enacted a renewable energy law with a goal of directly supporting the growth of clean energy companies (Bradsher 2010). Companies that fall within the strategic group along with NRG Energy includes Camco International, Canadian Solar, Inc. (CSI), China Biodisel International, and China Sun Biochem. Camco specializes in assisting industrial companies and utilities in order to create and maintain greenhouse gas emission reduction projects. Same as NRG Energy, the company focuses on managing the entire process from the beginning of the project to the final delivery. CSI is just as independent as NRG Energy as it is it’s own standard solar module as well as specialty solar module. Also just as NRG Energy it is a product company which is able to handle consumers of their product situated in various markets worldwide. Based in Longyan, a Fujian province of China, China Biodiesel’s main focus is on the commercial production of biodiesel. Maintaining it’s innovative edge just as NRG Energy, China Biodiesel has developed proprietary processes and technology, using waste cooking and other oils, for biodiesel production (Bert 2007). China Sun Biochem recently completed constructing an ethanol plant in Shenyang, China giving the company a comparative advantage over NRG Energy. China Sun Bioche...

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