Managerial economics

Examine the economics of markets and how market and product characteristics, such as industry concentration, entry barriers and product differentiation can affect price and output decisions and the profits of individual firms and entire industries.

“Industry analysis frameworks, such as Michael Porter’s1 Five Forces and Adam Brandenburger and Barry Nalebuff’s Value Net, provide a structure that enables us to systematically work through these wide-ranging and often complex issues.”

Porter1 “presents a convenient framework for exploring the economic factors that affect the profits of an industry. Porter’s main innovation is to classify these factors into five major forces that encompass the vertical chain and market competition.”