Revised and updated to reflect the cutting edge of academic thinking about business strategy, the Fourth Edition of Besanko, Dranove, Shanley, and Schaefer's highly acclaimed text offers a solid economic foundation for strategic analysis. By presenting basic concepts of economic theory with ideas in modern strategy literature, the book provides an economic lens for viewing the broad sweep of the strategic activities of the firm.

The book begins by focusing on the boundaries of the firm and examines competitive strategy from the perspective of industrial organization (IO) economics, particularly Porter's Five Forces. It then explores strategic positioning and dynamics as well as topics associated with internal organization, including personnel economics, organization structure, and strategic fit.

PART ONE. FIRM BOUNDARIES.

1. The Evolution of the Modren Firm.
2. The Horizontal Boundaries of the Firm. Economies of Scale and Scope.
3. The Vertical Boundaries of the Firm.
4. Organizing Vertical Boundaries. Vertical Integration and Its Alternatives.
5. Diversification.

PART TWO. MARKET AND COMPETITIVE ANALYSIS.

6. Competitors and Competition.
7. Strategic Commitment.
8. The Dynamics of Pricing Rivalry.
9. Entry and Exit.
10. Industry Analysis.

PART THREE. STRATEGIC POSITION AND DYNAMICS.

11. Strategic Positioning for Competitive Advantage.
12. Sustaining Competitive Advantage.
13. The Origins of Competitive Advantage. Innovation, Evolution, and Environment.
14. Agency and Performance Measurement.

PART FOUR. INTERNAL ORGANIZATION.

15. Incentives in Firms.
16. Strategy and Structure.
17. Environment, Power, and Culture.
18. Strategy and the General Manager.
Glossary.
Name Index.
Subject Index