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A company's geographic coverage plays a significant role in its competitive strategy. It determines the reach of the company's products or services and can influence its market share. Companies with a wider geographic coverage can cater to a larger customer base, thus potentially increasing their sales and profits. It also allows them to diversify their risk across different markets. However, it's important to note that expanding geographic coverage also comes with challenges such as increased operational complexity and potential cultural differences in different markets.
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For instance, other dimensions to measure could be brand identity, distribution channels, quality or technology, level of vertical integration, or specific cost position or services offered. In this case, the y-axis represents price and quality while the x-axis highlights the geographic coverage of competitors, or how many locations they have throughout the world. You then group the players according to where they land and plot them on the map.
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