The Economics of Strategy

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9780471598497: The Economics of Strategy
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This comprehensive book applies modern economic principles to study a firm's strategic position. It focuses on a company's boundaries economics, transactions costs, economies of scale and scope and diversification, as well as industrial organization economics. It also covers strategic positioning and dynamics associated with internal organization.

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From the Publisher:

Designed to engage and challenge students, this comprehensive book applies modern economic principles to study a firm's strategic position. The first section focuses on a company's boundaries, economics, transactions costs, economies of scale and scope and diversification. The second part deals with industrial organization economics such as market structure and dynamic price competition and concludes with four detailed industry analyses. The third segment covers strategic positioning and dynamics. The final section offers topics associated with internal organization. Contains hundreds of examples to illustrate how the economic principles of strategy apply to the actual business world.

From the Back Cover:

Discover the art of strategic thinking

Revised and updated to reflect the cutting edge of academic thinking about business strategy, the Fourth Edition of Besanko, Dranove, Shanley, and Schaefer’s highly acclaimed text offers a solid economic foundation for strategic analysis. By presenting basic concepts of economic theory with ideas in modern strategy literature, the book provides an economic lens for viewing the broad sweep of the strategic activities of the firm.

The book begins by focusing on the boundaries of the firm and examines competitive strategy from the perspective of industrial organization (IO) economics, particularly Porter’s Five Forces. It then explores strategic positioning and dynamics as well as topics associated with internal organization, including personnel economics, organization structure, and strategic fit.

Features of the Fourth Edition
  • Chapters on human resources management, entry, positioning, dynamics, technological change, and organizational structure are substantially revised.
  • An updated chapter on business history covers the recent dot-com bubble.
  • Presents economic principles without overemphasizing the math.
  • Rigorous treatment of organizational topics such as structure and culture enables you to experience the full scope of strategic thinking.
  • The authors use Porter’s Five Forces as a tool for organizing industry analysis, building on the coverage of industrial organization and game theory. The text also considers the Value Net, another tool for organizing industry analysis.
  • Includes coverage of make or buy decisions (Chapters 2-4) and benefit and cost advantage and sustaining advantage (Chapters 11-13).
  • Fascinating examples, including many new to this edition, bring the economic models to life. Many of the examples involve businesses outside of the United States.

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