What is the difference between market segmentation analysis and strategic group analysis?

Market segmentation analysis is a process of dividing the consumers into groups or segments that have the same or similar characteristics (Wedel & Kamakura, 2012). These characteristics could be different demographics like age, race, nationality etc. or it could be based on some social, psychological or religious believes.

Strategic group analysis on the other hand is a segmentation of the different companies based on their shared characteristic (Evers & Gerke, 2009). For example companies can be grouped or segmented bases on geographical market segmentation, ownership structures, specialization and many other characteristics.