In 1959, Prof. Joe Bain published the Structure-Conduct-Performance (SCP) framework. Since then it has become a standard analytical tool for understanding industry and market behavior. Here’s a look at the Canback adaptation, used extensively in our work.
The structure, conduct, and performance of an industry each play a role in shaping the competitive landscape. By letting the framework shape the analytical effort, one can be fairly certain that every aspect of industry and competitive dynamics have been covered when it is time to pull together the findings and recommendations from a project.
We employ the SCP framework in almost every project to gain insight into the workings of the market. Thus, we share the framework so that clients can see what we focus on, and prospective consultants will know what types of analyses they will face.
Bain, Joe S. Industrial Organization. New York: John Wiley & Sons, 1959.
Caves, Richard E. American Industry: Structure, Conduct, Performance. Englewood Cliffs, NJ: Prentice-Hall, 1964.
Porter, Michael E. Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: The Free Press, 1980.