Strategic Groups of EU Food Manufacturers

Strategic groups of food manufacturers are derived using factor and cluster analysis applied to a survey of European food manufacturers. The aim is to obtain groupings of businesses that are meaningful for industry and policy analysis. Eight strategic groups are derived and profiled. The sources of competitive advantage of the businesses in the eight groups are assessed in relation to expected developments in the European food industry and the implications for industry and policy analysis are introduced. For example, businesses that have developed competencies in international sales linked either to product or process innovation appear better placed than those relying on local or national brand strategies. Countries with a large share of the former types of firms (e.g., Denmark) are better placed than countries with a large share of the latter types (e.g., Finland).