As an exploratory attempt, this study examines the patterns of strategic changes of the firms and changes in strategic group structure in response to environmental changes of the industry. Empirical analyses of 39 firms in the Korean tile industry for the period of 1986~1990 reveals that : 1) environmental changes had different impacts on attractiveness of different product / market segment : 2) the relatively large firms in less attractive product/market segments were more likely to change their domains : 3) according to their specific target product/market segments, the firms tended to strengthen different resource capabilities which were identified changes of the firms resulted in the changes in strategic group structure during the same period. Implications and the limitations of this study are finally discussed.