Batch: 2018-20 Term: VI

Credits: 2.5
Course (Elective): Industrial Economics and Competitive Strategy

Course Instructor:

Objectives of the course:

The main objective this course is describing the dynamics of firms, market and industry behavior within the
theoretical framework of economics. The specific objectives of this course are

• To add greater insight into theory of firms and market.

• To develop critical thinking about pricing and non-pricing competition among firms.

• To highlight various sources of market power that may be enjoyed by a firm.

• To identify and analyze entry and exit possibilities of various markets.

Pre-requisites (if any.)

Students should have basic understandings of Microeconomics tools and techniques. General awareness
about the international and national business and economic issues is an important prerequisite.

Learning Objectives:

After successful completion of the course, the students would be able to:

1. Understand some the strategic objectives with which firms operate in a market that may not be
essentially profit maximizing.

2. Identify various sources of market power that a firm may enjoy in an industry.
3. Generate ideas for various dimensions of competitions among rivals firms.
4. Identify the costs and benefits of various alternative strategies of entry into and exit from a market.

Career Focus:
Since this course deals with theory of firm and markets at an advance level, students who opt for this course will be
benefitted in building career in management that involve analyzing, understanding and even strategizing firm
behavior. This course will greatly benefit those candidates who look for a career that involve, research and analysis
of market conditions and devise appropriate strategic moves for the relevant firm and industry.

Mapping with Job profile

This course is designed to help student understand the entire process of decision making of a firm that involve
strategic choices like entry, exit, capacity choice, introduction and pricing of new product line. With a holistic
understanding of firms and market; the candidate will have an advantage in building career in areas of consultancy,
banking and finance, marketing and jobs that involve strategy level thinking.

Students can opt for job profiles that involve research and analysis in consultancy and market research firms. They
will also be befitted in their chosen career path in long run as they move high in the organization ladder where they
will increasingly be involve in executing and devising corporate level strategies.

Any other Information:

Industrial Economics and Competitive strategy deals with issues of firm’s objectives that are beyond the
standard neo classical assumptions. It discusses the sources of market power enjoyed by the firms in an
industry. The strategic decisions of firms in terms of price and non -price competition and accommodation
or prevention of entry of potential rivals in an industry are described within the theoretical framework of
economics.