Strategic Groups and the Analysis of Market Structure and Industry Dynamics1

SUMMARY This paper provides an overview of strategic groups research and argues that it should be linked more closely to questions central to strategic management. Particularly fruitful directions for future research include industry evolution, competitive and industry dynamics, and linkages to resource-based theories. Specific observations and suggestions are made about the content and method of strategic groups research. These are illustrated by reference to empirical studies of the pharmaceutical industry and the food processing industry.

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