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Industry and Competitive Analysis

A. Tony Prasetiantono

Course Aims (1)

Develop understanding of the economic principles underlying industry structure and strategy formulation  Develop skills in analyzing the drivers of the competitive environment and in identifying sound corporate strategies  Develop the ability to apply theoretical and empirical contributions in academic research to real world cases in theory, with good judgement

Course Aims (2)
 Develop

a critical scientific attitude and an ability to formulate research questions and conduct research independently  Develop team work and presentation skills  Develop skills in searching for, and making good use of, publicly available information on firms and industries.

Course Content (1)
 This

course uses economic theory to analyze the competitive behavior of business units (including pricing, product decisions, product development, market focus, and investment decisions) under varying economic conditions of market structure (perfectly competitive, oligopoly, monopoly, monopolistically competitive, and regulated)

Course Content (2)

The tools, techniques, and concepts introduced in the course are intended to help the student analyze:

The overall profitability of a firm/industry/market segment; Analyze how changes the environment are likely to affect the firm/industry/market segment over time How strategic choices by the firm are likely to affect its overall profitability in the face of changing environment.

Course Content (3)

The changes analyzed include economic, legal, societal, regulatory, and technological factors that affect the behavior of customers, competitors, suppliers, potential new entrants, and regulators.  The tools and techniques should help the student understand, anticipate, and be capable of influencing developments that affect the profitability of the firm/industry/market.

Course Content (4)
 Competitive

analysis not only looks at the choice of what markets to enter and when, it also can help one know when to avoid certain situations because the market structure and behavior of other actors makes the environment fundamentally unattractive.

Textbooks
 David

Besanko, David Dranove, Mark Shanley and Scott Schaefer (2003), The Economics of Strategy, 3rd edition, John Wiley & Sons, New York. (Book A)  Willie Chien, Stan Shih, and Po-Young Chu (2005), Business Growth Strategies for Asia Pacific, John Wiley & Sons, Singapore. (Book B)

Plan of the Course (I)
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Week 1: Introduction Week 2: Emerging Asia (B: Chapter 1) Week 3: Asian culture and business opportunities (B: Chapter 2-3) Week 4: Analyzing the competition (B: Chapter 4-5-6) Week 5: Market structure (A: Chapter 6) Week 6: Value Creation (A: Chapter 10) Week 7: What is strategy? Overview of broad concepts in the field (A: Chapter 12) Week 8: Mid-Term

Plan of the Course (II)
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Week 9: Strategic commitment (A: Chapter 7) Week 10: The dynamics of pricing rivalry (A: Chapter 8) Week 11: Strategic positioning for competitive advantage (A: Chapter 11) Week 12: Entry into new market (A: Chapter 9) Week 13: Student Presentation 1 Week 14: Student Presentation 2 Week 15: Student Presentation 3 Week 17: Final Exam

Course Requirements
 Exams:

Mid-term and Final : 30% per each  Paper (approximately 20 pages): 20%  Student Presentations + Class Participations: 20%
 Appointment:

tony_prasetiantono@paue.ugm.ac.id