Strategic Groups in the Pension Market and Their Relationship with Its Performance

This paper analyses the Chilean pension market under the theory of strategic groups. The Chilean pension model is a benchmark at the international level. The system seeks to ensure that pension fund managers (AFPs) do not have market power, and that they can compete by charging lower commissions, achieving higher returns on funds and offering better service. Considering these characteristics, it is necessary to analyse the pension market with the theory of strategic groups. From this perspective, it is understood that the performance of the AFPs is determined by the characteristics of the industry and by its resources and capabilities. It is concluded that the strategic dimensions that determine the competitive behaviour of the AFPs are those of scope, service and publicity. AFPs operating in the pension market are grouped into 4 conglomerates. Finally, it is concluded that strategic decisions in the scope and advertising dimensions have no impact on the result, but that the deployment of in-service resources is positively related to the year s profit.