ECONOMICS OF STRATEGY
Academic Year 2023/2024 - Teacher: Antonio D'AGATAExpected Learning Outcomes
At the end of the course, students are expected to have a solid understanding of the fundamental economic principles underlying firms' strategies aimed at creating and maintaining a competitive advantage. The course also aims to offer students the analytical tools to conduct the study of real company cases.
Course Structure
The course combines lectures with exercise classes. The lectures will cover the theoretical aspects of the course, exercise classes offer the students the opportunity to apply theory to real company cases.
Required Prerequisites
Elementary knowledge of microeconomics, with particular reference to the working of competitive and imperfectly competitive markets.
Attendance of Lessons
Attendance is not required but strongly encouraged
Detailed Course Content
Business strategy
Competitive advantage
Organization design
Industry analysis
The spectrum of competition and niche markets
Competition in concentrated markets
Entry and the advantage of incumbency
Creating and capturing value in the value chain
Strategic management in a changing environment
Strategy in markets with demand-side increasing returns
Textbook Information
1. G. Saloner, A. Shepard and J. Podolny, Strategic Management, J. Wiley & S., New York, 2001, Chapters 1, 2, 3, 4, 6, 7, 8, 9, 10, 11, 12.
2. W.C. Kim and R. Mauborgne, Blue Ocean Strategy. How to Create Uncontested Markets Space and Make the Competition Irrelevant, Harvard Business Review Press, Cambridge, 2015, Chapters 1,2.
3. R. Hamermesh, K.D. Gordon, J.P.Reed Crown and Cork and Seal Company, Inc., Harvard Business School, Case Study, rev 1987 (Product number 378024-PDF-ENG, available at: http://cb.hbsp.harvard.edu).
4. P. Ghemawat, H.J. Stander, Nucor at a Croassroads; Harvard Business School, Case Study, Rev. 1992 (product number 793039, disponibile all'indirizzo: http://cb.hbsp.harvard.edu).
Course Planning
| Subjects | Text References | |
|---|---|---|
| 1 | Introduction: Strategic Management | Saloner-Shepard-Podolny, Ch 1 |
| 2 | Business Strategy | Saloner-Shepard-Podolny, Ch 2 |
| 3 | Competitive Advantage | Saloner-Shepard-Podolny, Ch 3 |
| 4 | Internal Context: organizational Design | Saloner-Shepard-Podolny, Ch 4 |
| 5 | External Context: Industry Analysis | Saloner-Shepard-Podolny, Ch 6 |
| 6 | The Spectrum of Competition and Niche Markets | Saloner-Shepard-Podolny, Ch 7 |
| 7 | Competition in Concentrated Markets | Saloner-Shepard-Podolny, Ch 8 |
| 8 | Entry and the Advantage of Incumbency | Saloner-Shepard-Podolny, Ch 9 |
| 9 | Creating and Capturing Value in the Value Chain | Saloner-Shepard-Podolny, Ch 10 |
| 10 | Strategic Management in a Changing Environment | Saloner-Shepard-Podolny, Ch 11 |
| 11 | Strategy in Markets with Demand-Side Increasing Returns | Saloner-Shepard-Podolny, Ch 12 |
Learning Assessment
Learning Assessment Procedures
Written exam. Six open questions. Time: 120 minutes.
Examples of frequently asked questions and / or exercises
What is business strategy?. Two main routes to competitive advantage. The coordination and incentive problems in organization design. Porter's Five Forces Industry Analysis Framework. Timing in Oligopoly. Opportunity for creating value along the value chain: The role of relation-specific investments. The Four Actions Framework of Blue Ocean Strategy.