Strategic Management Quarterly

Competitive Advantage Variations between Strategic Group Members: A Comparison of Global Petroleum Producers
Hyungu Kang, Ph.D.

Abstract
A competitive strategy outlines how a company competes within its industry. Although each company employs its unique competitive strategy, strategic group assessments identify clusters of competitors that seek to execute similar competitive strategy. However, the empirical evidence for a direct link between strategic group membership and performance is inconsistent and conflicting. This is primarily due to the various approaches used, which have generally not adequately captured the differences in firms' strategies in competitive environments. This paper explores the different sources of competitive advantages between within-group rivals, British Petroleum (BP) and ExxonMobil, two leading competitors within the same strategic group in the global petroleum industry. This paper analyzes and compares the differences and similarities of the foundations of competitive advantages of within-group rivals, BP and ExxonMobil, and makes strategically meaningful suggestions based on building blocks of the competitive advantage approach.

Full Text: PDF     DOI: 10.15640/smq.v8n3_4a2