Is there still value in strategic group research?

This paper offers a selected review of strategic group theory and seeks to explore the benefits and limitations of modern strategic group analysis within the context of the Pharmaceutical Industry. The rise and fall of strategic group research is reviewed and some suggestions advanced as to the reasons why strategic group research has often produced conflicting results, particularly with regard to the link between group membership and performance. The review concludes that strategic group research continues to offer a valuable way to classify firms by their strategy and provides some suggestions as to how future studies may avoid the pitfalls exposed by previous research.