Competitive Analysis and Strategy

Samenvatting les 4 vertical integration

This document summarizes the first four theoretical lectures of the course "Competitive Analysis and Strategy", held by Prof. Iwan Bos. A summary of the cases solved in class is NOT provided in this document - lectures only! This document prepares for the mid term exam of this course, where only the first four lectures are addressed.

This document gives an elaborate explanation from the book of what has been covered in Case session three. the following topics are being discussed: Price Elasticity of Demand; Competitors Identification; Measuring Market Structure; Market Structure and Competition (Monopoly, Perfect Competition, Monopolistic Competition, Oligopoly); Competitive Discipline; impediments to coordination; Asymmetries among firms and the sustainability of cooperative pricing; Facilitating Pricing; Internal Rivalry.

This document gives an elaborate explanation from the book of what has been covered in Case session two. the following topics are being discussed: Reasons to Buy (Bureaucracy effect and exploiting scale and learning economies); Reasons to Make (the foundation of contracts; coordination; Leakages; Transaction Costs; RSI; Holdup problem).

This document gives an elaborate explanation from the book of what has been covered in Case session one. the following topics are being discussed: Definition of Economies of Scale/Scope; Scale Economies, Invisibility, and the spreading of Fixed Costs; Special Sources of Economies of Scale and Scope; Complementariness and Strategic fit; Sources of diseconomies of scale; The learning Curve; Why do firms diversify; and Managerial reasons for diversification.