C. Bhaktavatsala Rao and L.V.L.N. Sarma Structural Analysis of the Indian Automobile Industry Studies of indusiry evoluaion acquire a meaningful perspective if variables of siructure and strategy are imegrated imo such studies. This paper develops and applies the methodology of structural analysis 10 study the evolution of an important component of the Indian economy and industry. Structure of the indian automobile industry is analysed through identification of structural groups formed on ihe core strategic dimensions of technology t0 serve as a frame of reference for industry evolution. The study period és ‘artond into four pases asd on relevant macro-econoac ond india factors to provide unique time dimension to study of structural groups. Strategies that characterise structural group well as mobily among strctral groups are analysed. Perceived lintation ofthe study and possible extensions are discussed. Structural Analysis Studies of industrial performance can be approached through either industry or firm as a unit of analysis. However, not all the variables of structure, strategy and performance can be adequately captured through these two approaches alone. In this Context, analysis of groups of firms within an industry has emerged as an important addition to such studies; this has enabled an appreciation of structure, strategy and performance of an industry. The core of structural analysis comprises the methodology of industry mapping -- a technique by which the firms in an industry are grouped based on important and structurally critical strategic dimensions. The essential utility of industry mapping is that it offers “an intermediate frame of reference between looking at the industry as a whole and considering each firm separately” (Porter 1980, p. 132) Industry mapping based on strategic grouping has been a unique contribution to structure and performance. Hunt (1972) introduced the term Strategic group to describe the ‘symmetry of operations’ he observed in the domestic appliance industry. Hunt noted significant differences in characteristics and strategies among the firms as well as similar strategies among many firms in his study. Grouping of firms clarified understanding of the apparently viable strategic options in the industry. Porter (1980) defined strategic group as a group of firms within the same industry ‘making similar decisions in key areas. Porter considered that group membership defined the essential characteristics of a firm’s strategy. There has been a significant growth of literature on strategic groups. McGee and Thomas (1986) and Reger and Huff (1993) reviewed a total of 43 studies which appeared till 1992. Dr. © Bihaktavatsala Rao is Manager (Corporate Planning), Ashok Leyland Limited, Madras Dr. L. VL. N. Sarma is Professor of Management, Indian Institute of Technology, Madras. Decision, Vol. 21, Nos. } & 2, Janwary - June 1994 21 Copyright © 2012 ProQuest LIC. All rights reserved. Copyright © Indian Institute of Management