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Structure – Conduct – Performance

Structure – Conduct – Performance is a framework used for industry situation analysis that provides a complete understanding of current industry structure, players, conduct and their competitive performance over time. The assumption with this framework is that the performance of companies is determined largely by companies’ conduct and, ultimately, industry structure. The SCP model is used for gaining an overall understanding of an industry and provides a dynamic view of industry structure.

structure-conduct-performance framework


Economics of demand

Economics of supply

Industry chain economics



Capacity change

Vertical integration

Internal efficiency



Technological progress

Employment objectives


  1. Study basic conditions. Study current and past events relevant to the course of the industry.
  2. Examine industry structure. Study industry reports, examine recent changes to the industry structure, and link changes to external shocks.
  3. Examine and predict conduct. Study recent conduct and identify links to changes in industry structure (past or anticipated), and predict changes in conduct.
  4. Examine and predict performance. Study performance of individual companies linking it to the basic conditions and the following structure and conduct. Predict future performance of the individual companies.