Strategic groupings as competitive benchmarks for formulating future competitive strategy: A modelling approach

Previous studies on strategic groups have examined issues such as the identification of strategic groups, the relationship between strategic groups structure and industry performance, and the movement of strategic groups over time. In contrast to previous studies, this paper uses the analytical concepts of game theory to explore the question of what strategic groups will exist in the future. These benchmark (future) strategic groups represent long-run strategic positions available within an industry and thus reference points for firms in developing sustainable competitive strategies. The benchmark strategic groups are discussed and comments are offered to illustrate how firms can use the benchmark information to redirect their strategic positions in order to survive and remain competitive in the long run.

[1]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[2]  Karel Cool,et al.  Strategic Group Formation and Performance: The Case of the U.S. Pharmaceutical Industry, 1963-1982 , 1987 .

[3]  K. Hatten.  Strategic models in the brewing industry , 1974 .

[4]  A. Fiegenbaum.  Dynamic aspects of strategic groups and competitive strategy : concepts and empirical examination in the insurance industry , 1987 .

[5]  S. Oster.  Intraindustry structure and the ease of strategic change , 1982 .

[6]  M. Porter.  The Structure Within Industries and Companies' Performance , 1979 .

[7]  Jon M. Hawes,et al.  A taxonomy of competitive retailing strategies , 1984 .

[8]  Gregory G. Dess,et al.  Porter's (1980) Generic Strategies as Determinants of Strategic Group Membership and Organizational Performance , 1984 .

[9]  H. H. Newman.  Strategic groups and the structure-performance relationship : a study with respect to the chemical process industries , 1979 .

[10]  M. Porter,et al.  From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition , 1977 .

[11]  K. R. Harrigan.  An Application of Clustering for Strategic Group Analysis , 1985 .

[12]  Aneel G. Karnani.  The Value of Market Share and the Product Life Cycle-A Game-Theoretic Model , 1984 .

[13]  Aneel Karnani,et al.  Generic competitive strategies—An analytical approach , 1984 .

[14]  K. R. Kumar.  The relationship between mixed strategies and strategic groups , 1987 .

[15]  Aneel Karnani,et al.  Equilibrium market share—a measure of competitive strength , 1982 .

[16]  Karel Cool,et al.  STRATEGIC GROUP FORMATION AND STRATEGIC GROUP SHIFTS. A LONGITUDINAL ANALYSIS OF THE U.S. PHARMACEUTICAL INDUSTRY, 1963-1982 (COMPETITION, PERFORMANCE; UNITED STATES) , 1985 .

[17]  H. H. Newman.  Strategic Groups and the Structure-Performance Relationship , 1978 .

[18]  Michael Hunt.  Competition in the major home appliance industry, 1960-1970 , 1972 .

[19]  M. Hergert,et al.  The incidence and implications of strategic grouping in U.S. manufacturing industries , 1983 .

[20]  H. Thomas,et al.  Strategic Groups: Theory, Research and Taxonomy , 1986 .

[21]  H. Thomas,et al.  The concept of stable strategic time periods in strategic group research , 1987 .