Economics of Strategy, 5th Edition
September 2009, ©2010
The newly revised 5th edition offers more real-world applications to make materials studied in undergraduate Managerial Economics, Business Strategy, and Industrial Organization courses relevant. Armed with general principles, today’s students—tomorrow’s future managers—will be prepared to adjust their firms’ business strategies to the demands of the ever-changing environment.
PART ONE: ECONOMIC FOUNDATIONS OF STRATEGY.
1 Basic Microeconomic Principles.
2 Economies of Scale and Scope.
3 Agency and Coordination.
4 The Power of Principles: A Historical Perspective.
PART TWO: FIRM BOUNDARIES.
5 The Vertical Boundaries of the Firm.
6 Organizing Vertical Boundaries: Vertical Integration and Its Alternatives.
PART THREE: MARKET AND COMPETITIVE ANALYSIS.
8 Competitors and Competition.
9 Strategic Commitment.
10 The Dynamics of Pricing Rivalry.
11 Entry and Exit.
12 Industry Analysis.
PART FOUR: STRATEGIC POSITION AND DYNAMICS.
13 Strategic Positioning for Competitive Advantage.
14 Sustaining Competitive Advantage.
15 The Origins of Competitive Advantage: Innovation, Evolution, and the Environment.
PART FIVE: INTERNAL ORGANIZATION.
16 Performance Measurement and Incentives in Firms.
17 Strategy and Structure.
18 Environment, Power, and Culture.
- Improved "Economics Primer" - Part 1 now introduces and reviews essential microeconomics concepts:
- Demand, costs, pricing, and game theory
- Economies of scale, a concept fundamental to competition, entry, positioning and sustainability
- Incentives, vital material for understanding integration and organization structure
- The scope of business history to illustrate the importance of economic principles
- Enhanced discussions of current topics such as industry dynamics, competitive strategy, industrial organization, the theory of the firm, economics of regulation, strategic positioning, personnel economics, and much more.
- New and updated figures, tables, Example boxes, Chapter Summaries, Questions, and Endnotes added to each chapter.
- Comprehensive, cutting-edge academic thinking about business strategy from an economics approach.
- Supplies students with an economic lens for viewing the activities of firms and a logical framework for strategic analysis.
- Focuses on breadth and a higher level of analysis while offering illustrative and highly engaging real-world examples.
- The four “big” issues businesses face: boundaries of the firm, market and competitive analysis, position and dynamics, and internal organization.
- Porter's Five Forces: Perspective on how to use this model of industry analysis as an organizational tool.
- Delves into economic principles and models without overemphasizing advanced math.
- Many examples involving international businesses and business practices from the eighteenth century to the present day.