ABSTRACT
This chapter examines the strategy-performance consequences of strategic group membership for firms in the UK retail grocery industry. Indeed, a focal theme in the strategic groups literature (Caves and Porter, 1977; Caves, 1984; Cool and Schendel, 1987; McGee and Thomas, 1986; Porter, 1979) is that there is a theoretical relationship between strategic groups and financial performance. In particular, it is argued that profitability may differ systematically among groups in an industry because of mobility barriers, market factors and firm specific asset profiles.
