GMS 724 Lecture Notes - Lecture 11: Perfect Competition, Ipod, Marginal Cost

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Howard Lin

Document Summary

Strategy is the framework that managers apply to determine the competitive moves and business approaches that run the company. Strategy is management"s idea on how to best: attract customers, operate efficiently, compete effectively, create value. Industry organization paradigm: assumption of perfect competition, many buyers and sellers, perfect information, perfect knowledge among firms/buyers few, if any, entry/exit barriers full mobility of resources. Instead, firm performance is influenced by the presence of bright, motivated managers and their keen sense of innovative products or processes. The idea of industry structure helps explains the functions, form, and interrelationships among: suppliers of inputs, buyers of outputs, substitute products, potential new entrants, rivalry among competing sellers. Industry structure change: competitors" moves, government policies, changes in economics, shifting buyer preferences, technological developments, rate of market growth. New products, new firms, new markets, and new managers trigger new developments in rivalry, pricing, substitutes, buyers, and suppliers.