Competitions are most intense within strategic clusters; the closer the strategies adopted and the elements emphasized in the strategies of the strategic clusters, the more intense the competition; the intensity of the five competitive forces varies in different strategic clusters.
The concept of strategic clusters is very useful for analyzing the competitive structure of the industry, such an analysis helps to determine the stability of a period of time will be relatively high, making the analysis of the enterprise easier and more useful.
Applying strategic clusters to understand the competitive structure of an industry requires firms to plan their competitive actions and responses in advance along certain strategic dimensions, including pricing strategy, product quality, and distribution channels. This analysis suggests that it is possible to specify how firms compete similarly to each other based on how particular firms utilize similar strategic dimensions. A thorough understanding of key competitors helps companies formulate and implement.