Which term describes a group of firms in the same industry that adopts similar strategies?

The term that best describes a group of firms in the same industry that adopts similar strategies is "strategic group." This concept refers to the set of companies within an industry that pursue similar business models or competitive strategies. Firms in a strategic group may compete in similar ways, such as targeting the same customer segments, employing comparable pricing models, or utilizing similar distribution channels.

Strategic groups provide a useful framework for understanding competitive dynamics within an industry, as companies can operate within different groups that pursue varied approaches, which can impact their performance and market positioning. By analyzing these groups, businesses can identify their direct competitors, assess market opportunities, and formulate strategies that leverage their unique advantages within their specific context.

In contrast, the other terms—value chain, market segmentation, and target market—refer to different concepts within marketing and business strategy. The value chain focuses on the activities that create value for a company, market segmentation involves dividing a market into distinct segments based on needs or characteristics, and target market refers to the specific group of consumers a business aims to reach. While all these concepts are significant within marketing practice, they do not capture the idea of a collective of firms using similar strategic frameworks as effectively as the term "strategic group."