What term describes a set of companies that pursue a similar strategy within a specific industry?

The term that describes a set of companies pursuing a similar strategy within a specific industry is known as a strategic group. Strategic groups are defined based on the similarities in their business models, competitive behaviors, and market positions. Companies within the same strategic group often compete more closely with each other than with companies in other groups, as they target similar customers and offer comparable products or services.

Understanding strategic groups is crucial for analyzing industry competition, as it allows firms to identify their direct competitors and understand the dynamics within their niche of the market. This helps in crafting strategies that can effectively leverage unique strengths or exploit weaknesses in the competitive landscape.