A high percentage of companies that compete in the market belong to a business group. This paper analyses the competitive advantages between independent firms and firms belonging to a business group, focusing on the Spanish wine industry. The authors studied 339 wineries, compared their resources and capabilities, the strategies used and their business performance. The results suggest that while resources and capabilities are key for independent firms it is the business strategy that is most important for firms belonging to a business group. The study sheds more light on the application of specific elements to explain a firm’s business performance.