... taxonomy is the only benefit that it has brought). Second, the essence of competitive strategy and strategic groups to be highlighted, and whether they hold any importance to industry analysis (such as that of SCP). Through SCP an explanation of average profitability for different industries was created. By stating that conduct was largely implicit, SCP credited industry level profitability (and hence performance) to industry structure. Especially noted factors were market concentration, barriers to entry and product differentiation since these were seen as the variables that could limit or intensify the degree of competition. A further assumption was that managers had the ability to determine performance through their actions. In essence SCP could be used as a predictive device. This was the basis of the SCP approach. SCP was seen as beneficial since it classified firms into groups (by their structure) and gave a relatively simple explanation for performance, which could be relatively ...

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