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A Multivariate Model and Analysis of Competitive Strategy in the U.S. Hardwood Lumber Industry

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Business-level competitive strategy in the hardwood lumber industry was modeled through the identification of strategic groups among large U.S. hardwood lumber producers. Strategy was operationalized using a measure based on the variables developed by Dess and Davis (1984). Factor and duster analyses were used to define strategic groups along the dimensions of cost leadership, focus, and differentiation. A five strategic group model was identified and examined for strategic orientation and intragroup homogeneity. Two groups had no distinctive strategic orientation that suggested a competitive advantage; one group exhibited an overall cost leadership strategy; one exhibited a differentiation strategy; and one group exhibited a dual overall cost leadership/differentiation strategy. Strategic change in the industry was predicted to be primarily toward increased differentiation. Three strategic groups indicated significant change in this direction, and one group indicated an increase along both the focus and differentiation dimensions. For. Sci. 37(2):481-499.

Keywords: Industry structure; strategic groups; strategy

Document Type: Journal Article

Affiliations: Professor, Department of Wood Science and Forest Products, Virginia Polytechnic Institute and State University, Blacksburg, VA 24061-0503

Publication date: June 1, 1991

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