Strategic Groups and the Analysis of Market Structure and Industry Dynamics<sup>1</sup>

McGee, John; Thomas, Howard; Pruett, Mark

doi:10.1111/j.1467-8551.1995.tb00099.x

Cited by 55 publications

(57 citation statements)

References 54 publications

(65 reference statements)

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“…The concept of strategic groups dates back to the 1970s when Hunt (1972) first described an intra-industry structure in the US white goods industry. Strategic groups are defined here as a group, or sub-set, of firms within the same industry (Porter, 1979;Carroll, Pandian and Thomas, 1994;Caves and Porter,1977), that has formed on the basis of similar combinations of scope and resource commitments (Cool and Schendel, 1988;McGee, Thomas, and Pruett, 1995).…”

Section: Strategic Group and Aspirational Group Overlapmentioning

confidence: 99%

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Senior management perceptions of aspirational groups: A study of the UK general insurance market

Robson

Heijden

2016

Journal of Business Research

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This study examines the concept of aspirational groups: a reference group that a firm wishes to associate with. A desire to belong to an aspirational group may provide an important source of strategy formulation. Drawing from insights from consumer marketing on aspirational groups, the study explores the composition and structure of aspirational groups compared to strategic groups in a market setting. Using qualitative data from senior managers in the UK general insurance market, this study arrives at the following findings. First, aspirational groups do not necessarily share the same composition or structure as strategic groups. Second, selection of aspirational firms is driven by attribute association. Third, aspirations can be conflicting and reversed. Fourth, firms do not seek membership of the aspirational group but isolate key attributes they aspire to. These findings contribute to knowledge on strategy formation by highlighting the important role aspirational groups play in understanding competitive market movements.

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Section: Strategic Group and Aspirational Group Overlapmentioning

confidence: 99%

“…Strategic groups comprise of similar firms in the same group and are typically identified in terms of resource deployment and market scope (Cool and Schendel, 1988;McGee, Thomas, and Pruett, 1995). Firms in these groups are barred from crossing over to other groups depending on mobility barriers (Caves and Porter, 1977).…”

Section: Introductionmentioning

confidence: 99%

Senior management perceptions of aspirational groups: A study of the UK general insurance market

Robson

Heijden

2016

Journal of Business Research

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“…Originating from the broader field of industrial organization economics in the 1970s, strategic groups were identified as clusters of companies within industries (Porter, 1980). Such divisions arise because industries are not collections of heterogeneous companies but subsets of firms separated by mobility barriers limiting movement between groups (Ferguson et al, 2000;McGee et al, 1995). Strategic group research has facilitated a better understanding of how group structure can shape rivalry and ultimately performance, as well as group identities and reputations.…”

Section: Strategic Groupsmentioning

confidence: 99%

“…The strategic group concept emerged within strategic management as an attempt to better understand the competitive backdrop and demands faced by companies operating in an industry (McGee et al, 1995;Porter, 1980;Short et al, 2007). Strategic management analysis has typically taken place at the level of the firm and the industry, and has omitted the interface of firm and industry competitor behaviour.…”

Section: Strategic Groupsmentioning

confidence: 99%

The role of strategic groups in understanding strategic human resource management

2012

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Management AbstractPurpose -This article explores how understanding the challenges faced by companies' attempts to create competitive advantage through their human resources and HRM practices can be enhanced by insights into the concept of strategic groups within industries. Based within the international hotel industry this study identifies how strategic groups emerge in the analysis of HRM practices and approaches. It sheds light on the value of strategic groups as a way of readdressing the focus on firm and industry level analyses.Design Methodology/Approach -Senior human resource executives and their teams across eight international hotel companies (IHCs) were interviewed in corporate and regional headquarters, with observations and the collection of company documentation complementing the interviews.Findings -The findings demonstrate that strategic groups emerge from analysis of the HRM practices and strategies used to develop hotel general managers (HGMs) as strategic human resources in the international hotel industry. The value of understanding industry structures, dynamics and intermediary levels of analysis are apparent where specific industries place occupational constraints on their managerial resources and limit the range of strategies and expansion modes companies can adopt.Research limitations/implications -This study indicates that further research on strategic groups will enhance the theoretical understanding of strategic human resource management (SHRM) and specifically the forces that act to constrain the achievement of competitive advantage through human resources. A limitation of this study is the dependence on the human resource divisions' perspectives of realising international expansion ambitions in the hotel industry.Practical implications -This study has implications for companies' engagement with their executives' perceptions of opportunities and threats, and suggests companies will struggle to achieve competitive advantage where such perceptions are consistent with their competitors.Originality/value -Developments in strategic human resource management have relied upon the conceptual and theoretical developments in strategic management, however, an understanding of the impact of strategic groups and their shaping of SHRM has not been previously explored.

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“…In addition, performance is generally treated in the studies on strategic groups in the narrow terms of profitability, thus opposing a broader view including financial and operational measures (McGee et al 1995;Peteraf & Shanley, 1997). It therefore seems important that multiple measures of performance are incorporated in the analysis of strategic groups.…”

Section: Conclusion and Future Research Directionsmentioning

confidence: 99%

Strategic Groups Structure, Positioning of the Firm and Performance: A Review of Literature

Dornier¹,

Selmi²,

Delécolle³

2012

IBR

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A central theme of the literature on strategic groups is that group membership affects performance. The basic premise of strategic groups and their main interest is in fact that performance can be attributed to strategic groups and not only to the idiosyncratic character of the individual firm. The aim of this paper is therefore to characterize and synthesize studies that examined the relationship between strategic groups, considered from the economic or cognitive perspectives, and performance. We notice that these studies have often yielded conflicting results. We will focus specifically on the relationship between the positioning of the firm, the strategic group and performance, a link that has hitherto been little studied in the literature. In other words, is there for the firm an optimal positioning in relation to strategic groups in its industry? The few empirical studies focusing on this relationship, emphasizing a cognitive approach, were able to show that firms moderately differentiated with respect to their belonging strategic group are more successful.

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Strategic Groups and the Analysis of Market Structure and Industry Dynamics¹

Cited by 55 publications

References 54 publications

Senior management perceptions of aspirational groups: A study of the UK general insurance market

Senior management perceptions of aspirational groups: A study of the UK general insurance market

The role of strategic groups in understanding strategic human resource management

Strategic Groups Structure, Positioning of the Firm and Performance: A Review of Literature

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Strategic Groups and the Analysis of Market Structure and Industry Dynamics1

Cited by 55 publications

References 54 publications

Senior management perceptions of aspirational groups: A study of the UK general insurance market

Senior management perceptions of aspirational groups: A study of the UK general insurance market

The role of strategic groups in understanding strategic human resource management

Strategic Groups Structure, Positioning of the Firm and Performance: A Review of Literature

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Product

Resources

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Strategic Groups and the Analysis of Market Structure and Industry Dynamics¹