Relationship Between The American Small Telecommunication Companies And Its Performance

1818 Words Sep 11th, 2014 8 Pages
The primary objective of this article is to examine the strategy-performance of the firm. The paper studies the issue of strategic group from different theoretical point of views. There are some researchers suggest that it is beneficial to consider the firm characteristics while other researchers recommend studying the industry as a whole. The strategic group discipline is the center focus of the individual firm and industry, which helps in achieving explanatory study between the firm strategy and performance of the company. The paper aims to provide a foundation to understand the relationship between the American small telecommunication companies and its performance.
Hunt (1972) introduces the strategic group concept. The Hunt concept explains the performance difference between the firms that are pursuing different strategies. The term strategic group is widely used in the strategic management after used by Michael Porter (1979) and Porter and Cave (1977). Porter Defined the strategic group as a group of firms in the industry subsequently the same or comparable strategy along a set of strategic dimensions. Mascarenhas (1988) argues that the strategic group exists only if significant mobility barriers exist between groups.
Porter (1980) describes the strategic group as that is an intermediate form of deference between the industries as a whole and considers each company individually. Furthermore, Porter suggests the mobility barriers of the group make a difference between…

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