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DOCUMENT DESCRIPTION

Structure-Conduct-Performance (SCP) is a framework for industry situation analysis. It makes relations among market structure, market conduct, and market performance. Within this construct, it provides a complete understanding of current industry structure, players, conduct and their competitive performance over time. SCP also offers a causal theoretical explanation for firm performance through economic conduct on incomplete markets.

SCP was first published by economists Edward Chamberlin and Joan Robinson in 1933; and later further developed by Joe S. Bain in his book "Industrial Organization" in 1959. Numerous consulting firms (such as McKinsey) and business academics (such as Michael Porter) have since adopted and enhanced this model.

In the modern version of SCP, there are 4 key components highlight:

* Market Conditions
* (Market) Structure
* (Market) Conduct
* (Market) Performance

The SCP framework is considered a pillar of Industrial Organization Theory.

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This business document is categorized under:
Business Framework Primers

File Type: PowerPoint (ppt)

Tag(s): Market Analysis, Structure Conduct Performance, SCP, Industrial Organization

Number of Slides: 16

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Upload date (first version): Feb 13, 2017

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