Performance of strategic groups in the Greek dairy industry

This paper tests for the presence of differences among the effectiveness of profitability determinants between strategic groups with advertised and unadvertised products by using both the regression analysis and the Chow‐test. Panel data for the 23 Greek dairy firms that operated over the period 1990‐94 are used to examine the determinants of firm profit margins. The results show significant differences for the effects of strategies on profitability between the two strategic groups. Only the firms with nationally branded goods, which are more profitable than the group of producers of unadvertised goods, can effectively apply both the advertising and the diversification strategies to increase profitability