Economics of Strategy

Boston Consulting Group veeps Evans and Wurster won a 1997 McKinsey Award for an article they wrote for the Harvard Business Review that became the basis of this book. Starting with a detailed account of the "near-demise" of the Encyclopaedia Britannica as an example, Evans and Wurster show how "the new economics of information will precipitate changes in the structure of entire industries and in the way companies compete." They emphasize the role information plays in every business, and they demonstrate that companies will no longer be forced to choose between "richness" (the quality of information) and "reach" (the number of people who share that information) in their marketing mix. Trade-offs between those two factors are no longer necessary because of increasing connectivity and growing standardization. As a result, organizational supply chains and value chains (the increments by which value is added to products and services) are being "blown to bits" and reconstituted into separate and new businesses. Among the examples the authors use to demonstrate their proposition are automobile dealerships, brokerage companies, and banks.

Packed with powerful examples from actual managers, MANAGERIAL ECONOMICS, 12e teaches you how to think analytically – and make better business decisions. Written by a seasoned and well-respected author team, Managerial Economics equips readers with the economic tools to avoid analytic pitfalls and become more effective managers. Drawing from more than 300 real-world applications, the authors illustrate how actual managers apply economic theories and techniques to solve real business problems. Current, comprehensive, and cutting edge, this new edition includes extensive coverage of the latest analytical tools in managerial economics, including game-theoretic tactics, information economics, and organizational architecture.

This text will be of interest to policy-makers, industry consultants and students of industrial economics and management alike who feel attracted and pay attention to strategic and structural elements of network economies.