STRATEGIC GROUP

Kartika Herbudiningtyas (2016) Strategic Group

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ABSTRACT

The objective of this literature research is to analyze the concept of ̳strategic groups‘ in a chronological way. The concept utilized in this pape r is ̳competitor analysis theory.‘ The method employed here is ̳content analysis. The original contribution of this research is the chronological development of the definition of strategic groups. The conclusion of this research is that a strategic group i s a group which is similar in some of its strategies (such as: cost structure, degree of product diversification, formal organization, control systems, perceptions, preferences of individuals, products offered and resources used, decisions, relevant dimens ions, combinations of scope, resource commitments, capabilities) and is detached from other business groups with a mobility obstacle both in and out. Strategic groups have impacts on company behavior and bank performance. There exists a correlation between strategic group membership and reputation, a correlation between strategic groups and performance, and an application/a tool for the classification of strategic group analysis. The drawback of this paper is the incompleteness of the definitions which occu rs every year due to time constraints faced and sources used.

Keywords : Strategic, Group