Economics of strategy
- 7th
- New Delhi Wiley India Pvt. Ltd. 2025
- xxvii, 609 p.
Table of content: Introduction: Strategy and Economics
Why Study Strategy? Why Economics? Disciplinary Interdependence The Need for Principles So What’s the Problem? A Framework for Strategy Boundaries of the Firm Market and Competitive Analysis Positioning and Dynamics Internal Organization The Book Endnotes Economics Primer: Basic Principles
Costs Cost Functions Total Cost Functions Fixed and Variable Costs Average and Marginal Cost Functions The Importance of the Time Period: Long-Run versus Short-Run Cost Functions Sunk versus Avoidable Costs Economic Costs and Profitability Economic versus Accounting Costs Economic Profit versus Accounting Profit Demand and Revenues Demand Curve The Price Elasticity of Demand Brand-Level versus Industry-Level Elasticities Total Revenue and Marginal Revenue Functions Theory of the Firm: Pricing and Output Decisions Perfect Competition Game Theory Games in Matrix Form and the Concept of Nash Equilibrium Game Trees and Subgame Perfection Chapter Summary Questions Endnotes Part One: Firm Boundaries
1 The Evolution of Business Principles
1.1 The Emergence of Chicago
1.2 The Ascendance of Mumbai
1.3 Building National Infrastructure: The Transcontinental
1.4 Evolution of the Steel Industry
1.5 The Gaizhi Privatization Process in China
2 The Horizontal Boundaries of The Firm
2.1 Hub-and-Spoke Networks and Economies of Scope in the Airline
2.2 The Division of Labor in Medical Markets
2.3 Learning by Doing in Medicine
2.4 The Pharmaceutical Merger Wave
2.5 Activist Investors in Silicon Valley
2.6 Haier: The World’s Largest Consumer Appliance and Electronics
3 The Vertical Boundaries of The Firm
3.1 What Apple “Makes” and What Its “Buys” for the iPhone
3.2 Licensing Biotechnology Products
3.3 Employee Skills: Make or Buy?
3.4 Disconnection at Sony
3.5 Nightmares at Boeing: The 787 Dreamliner
3.6 Bharti Airtel’s Outsourcing Initiative
3.7 Power Barges
3.8 A Game of Chicken? Specificity and Underinvestment in the
3.9 Walt Disney’s Acquisition of Pixar
4 Integration and Its Alternatives
4.1 Vertical Integration in a Mountain Paradise
4.2 Accountable Care Organizations
4.3 Vertical Integration of the Sales Force in the Insurance
4.4 Franchise Heat in China
4.5 Joint Ventures in Sub-Saharan Africa
4.6 Interfirm Business Networks in the United States: The Women’s
Part Two: Market and Competitive Analysis
5 Competitors and Competition
5.1 The SSNIP in Action: Defining Hospital Markets
5.2 Whole Foods Attempts to Acquire Wild Oats
5.3 The Bottom Drops Out on Cubs Tickets
5.4 Capacity Competition in the U.S. Beef Processing Industry
5.5 Cournot Equilibrium in the Corn Wet Milling Industry
5.6 Electric Markets, Bertrand Competition, and Capacity
6 Entry and Exit
6.1 Google’s Android Initiative
6.2 How the Japanese Broke into the U.S. Car Market
6.3 Jio’s Entry into Wireless Telecom in India
6.4 Emirates Air
6.5 Kellogg’s India Experience
6.6 Limit Pricing by Brazilian Cement Manufacturers
6.7 Entry Barriers and Profitability in the Japanese Brewing
6.8 Predatory Pricing in the Laboratory
6.9 Walmart Enters Germany . . . and Exits
6.10 Contestable Market in India
7 Dynamics: Competing Across Time
7.1 Competitive Dynamics of the Indian Airline Industry
7.2 Committed to a Settlement
7.3 Commitment at Nucor and USX: The Case of Thin-Slab
7.4 What Happens When a Firm Retaliates Quickly to a Price Cut
7.5 Forgiveness and Provocability: Dow Chemicals and the Market
7.6 Are Most Favored Nation Agreements Anticompetitive?
7.7 The Evolution of the Chinese Down Apparel Industry
8 Business Platforms and Competition
8.1 Not-for-Profit: Public Administrative Platforms in India
8.2 Google Search Platform
8.3 Encyclopedia Britannica and the Online Competition
8.4 Indian E-commerce War: Amazon, Flipkart and Snapdeal
8.5 Behavioral Impact of Food-delivery Platforms
8.6 Economics of Twitter
8.7 Pricing of Online Advertisements
8.8 Yahoo!’s Business Woes
9 Industry Analysis
9.1 Air India and the Indian Airline Industry in 2009
Part Three: Strategic Position and Dynamics
10 Strategic Positioning for Competitive Advantage
10.1 The Division of Value Creation for Gilead Sciences’ Sovaldi on
10.2 Kmart versus Walmart
10.3 The Emergence of Uber . . . and the Demise of the Taxi?
10.4 Creating Value at Enterprise Rent-a-Car
10.5 Measuring Capabilities in the Pharmaceutical Industry
10.6 Competing on Cost Without Cost Advantage: The Story of
10.7 “Haute Pot” Cuisine in China
10.8 Strategic Positioning in the Airline Industry: Four Decades of
11 Information and Value Creation
11.1 A Warranty for Surgery
11.2 The Evolution of Branding in Appliance Retailing
11.3 Teachers Teaching to the Test
11.4 Calorie Posting in New York City Restaurants
11.5 Hospital Report Cards
11.6 The Netflix Challenge
11.7 Big Data and Product Targeting
12 Sustaining Competitive Advantage
12.1 Coffee, Tea, or Starbucks?
12.2 Sports Dynasties
12.3 Cola Wars in Venezuela
12.4 Building Blocks of Sustainable Advantage
12.5 Patent Racing and the Invention of the Integrated Circuit
12.6 The Rise of the Swiss Watch Industry
12.7 Tale of India’s IT Outsourcing and Automobile Industries
Part Four: Internal Organization
13 Performance Measurement and Incentives
13.1 Differences in Objectives in Agency Relationships: Yahoo! and
13.2 Hidden Action and Hidden Information in Garment Factory Fire
13.3 “Target and Terror” in English Hospitals
13.4 Herding, RPE, and the 2007–2008 Credit Crisis
13.5 Quitters Never Win
13.6 Teams and Communication in Steel Mills
14 Strategy and Structure
14.1 ABB’s Matrix Organization
14.2 Organizational Structure at AT&T
14.3 Multi-divisional Structure of ITC Limited
14.4 Steve Jobs and Structure at Apple
14.5 Strategy, Structure, and the Attempted Merger Between the
14.6 Structure Does Not Always Follow Strategy: Case of
14.7 Multinational Firms: Strategy and Infrastructure
14.8 Reorganization at Rhône-Poulenc S.A
15 Environment, Power and Culture
15.1 The Sources of Presidential Power
15.2 Power and Poor Performance: The Case of the
15.3 Power in the Boardroom: Why Let CEOs Choose
15.4 Cultural Clash at Infosys
15.5 Corporate Culture and Inertia at ICI
15.6 Corporate Culture at Aetna: Yoga and the CEO
15.7 Corporate Culture at Ford
15.8 Preserving Culture in the Face of Growth: The Google IPO
Chapter Summary
Questions
Endnotes
Glossary
Name Index
Subject Index [https://www.wileyindia.com/economics-of-strategy-7ed-an-indian-adaptation.html]
Economics of Strategy focuses on the key economic concept’s students must understand and master to develop a sound business strategy. With a thorough and deep analysis, this Indian adaptation introduces the emerging business phenomena such as online network applications, business platforms, and big data. The inclusion of a completely new chapter on Business Platforms and Competition will help students in comprehending the role of platforms in today’s competitive business era. (https://www.wileyindia.com/economics-of-strategy-7ed-an-indian-adaptation.html)