INDUSTRY AND STRATEGIC GROUP-DYNAMICS - COMPETITIVE STRATEGY IN THE INSURANCE INDUSTRY, 1970-84

This article focuses upon dynamic aspects of strategic groups in the context of the US insurance industry from 1970-84. It examines the longitudinal structure of industry strategic groups and identifies the strategic patterns followed by these strategic groups over time. The mobility rates of firms between strategic groups are also assessed. It appears that three dominant groups are present throughout the period of the study while other group positions emerge and disappear over time. The evidence suggests that the quantum theory of strategic adaptation (i.e. dramatic and concerted change) satisfactorily models the processes of strategic group change. And, a low level of firm mobility is found to exist between strategic groups consistent with the presence of inertia and mobility barriers.