ECONOMICS OF STRATEGY

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.

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.

Elementary knowledge of microeconomics, with particular reference to the working of competitive and imperfectly competitive markets.

Attendance is not required but strongly encouraged

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

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, disponibile all'indirizzo: 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).

Written exam. Six open questions.

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.