Competitive Strategy
By Tobias Kretschmer, Ludwig-Maximilians-Universität München (LMU)
About this Course
This course is about the behavior of companies in competitive markets. Facing competition forces firms to look ahead and anticipate developments: If my rivals are likely to react to a price cut, I will have to take the expected reaction into account. We focus on such instances of “strategic interdependencies” in real business situations. We will first study the basic concepts of game theory as a toolbox with which we will then analyze strategic “games” in real-life settings. Rather than a set of checklists of “how-to-behave” in a number of prespecified situations, this course will teach you to think about business strategy in a systematic and exciting – and ultimately more successful – way!
We will use our toolbox to address and analyze different decisions firms take: Why do firms preannounce their products? How do price wars happen and when do they end? When should I enter a market in which firms currently make high profits? What makes strategic partnerships work? These are just some examples of the questions we will discuss during the course, but by the end of the course you should be able to apply the concepts to pretty much any business situation.
Syllabus
Week 1
- Take Care of Your Competitors
Week 2
-
Why Firms Work Together
Week 3
- Complementary Products and Strategic Partnerships
Week 4
- Entering a New Market
Week 5
- Why Worry About Research and Development
Week 6
- Designing Products Wisely
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