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Strategic groupings as competitive benchmarks for formulating future competitive strategy: A modelling approach
Author(s) -
Kumar K. Ravi,
Thomas Howard,
Fiegenbaum Avi
Publication year - 1990
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090110203
Subject(s) - benchmark (surveying) , competitive advantage , strategic planning , order (exchange) , identification (biology) , industrial organization , strategic control , strategic thinking , strategic fit , strategic financial management , strategic alignment , profit impact of marketing strategy , business , marketing , geodesy , finance , biology , geography , botany
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.