Identification of groups due to generic strategies among private primary schools using CFA
by Subhadip Sarkar
Asian J. of Management Science and Applications (AJMSA), Vol. 8, No. 1, 2023

Abstract: Strategic group analysis (SGA) based on the generic strategy has been a highly researched domain to understand the strategies of the firms, the formation of groups due to similar strategic inclination and their means for attaining leadership in an industry. This type of analysis, however, is rarely performed in the context of private primary schools. This paper attempts to detect such groups using primary data collected from the 20 schools (out of 35) selected randomly within Durgapur. The sole objective is to distinguish those schools, which adopt cost leadership strategies to remain relatively more attractive to the students belonging to poorer sections of society, as 90% of the population falls below the middle level of the Income group. The classification of a firm in terms of cost leadership or a differentiator is possible owing to the application of exploratory factor analysis followed by confirmatory factor analysis (CFA). The study reveals that seven schools, which pursue cost reduction principles, are to some extent prone to teach pupils from relatively lower economic classes, stressing the variables like relatively cheaper fee structure, staff engaged in other duties, or improving operational efficiency, etc.

Online publication date: Mon, 23-Oct-2023

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