Strategic Group Analysis of U.S. Food Businesses Using the Two-step Clustering Method

Utilizing strategic group analysis, this study classifies food businesses based on their propensity toward the different generic strategies and planning intensity. Data from a national survey was analyzed using the two-step clustering method. The resultant three groups are profiled based on their generic strategies and planning efforts, as well as their planning flexibility, view of industry volatility (dynamism), strategic emphasis on innovation, innovation, size, experience and financial performance. Managerial implications are made for each of these groups based on the profiles.