Why do firms tend to cluster into strategic groups?

Although strategic groups tend to be rigid, they are by no means fixed. One of the things managers have to be aware of is which firms may change group membership. With the results from Year 13 of the simulation, consider the following:

• Why do firms tend to cluster into strategic groups?
• Would it not make sense for firms to spread out across strategic spaces? Why or why not? Explain your rationale.
• How likely is it that firms competing in other strategic groups will adapt their strategy to compete directly against you? Explain your rationale.
• Which firms currently not in your strategic group would be most likely to try and enter your group? W