Based on the following explanation, why is it important for a small business to do strategic group analysis?: Strategic group is a $$a set of industry competitors that have similar characteristics to one another but differ in important ways from the members of other groups$($Mapping Strategic Groups$,2012,$ para. $1).$ Understanding strategic groups within an industry is important for three reasons:

knowing a firm$$s closest rivals helps a firm assess performance;

the strategies pursued by rival firms offer alternative paths to success;

analysis of strategic groups can reveal untapped opportunities in the industry $($Mapping Strategic Groups$,2012).$

Strategic group analysis entails mapping competitors based on two variables $($key success factors, e$.$g$.,$ brand image vs quality of services$)$ on an x and y axis. Each company is assigned a position on the map. Those closest to each other belong to one strategic group. The map reveals a firm$$s closest rivals and where they stand. Repeated mapping using different sets of two variables can reveal degree of homogeneity or heterogeneity in an industry, as well as attractive and unattractive positions.