In this six-module course, you will learn how businesses and organizations behave in situations in which strategic decisions are interdependent, i.e. where my actions affect my competitors' profits and vice versa. Using the basic tools of game theory, we will analyse how businesses choose strategies to attain competitive advantage.
This course is also available in Chinese. Please go to our course catalog to access the Chinese version of Competitive Strategy.
This course is part of the Competitive Strategy and Organization Design Specialization
Competitive Strategy
Offered By
Competitive Strategy and Organization Design SpecializationLudwig-Maximilians-Universität München (LMU)
About this Course
4.7
1,720 ratings
Skills you will gain
Strategic ManagementGame TheoryCompetition (Economics)Strategic Thinking
Syllabus - What you will learn from this course
Week
1Take Care of Your Competitors
In this module, we introduce the basic concepts of game theory and use strategic games to learn competitor analysis. We answer “what is a strategy?” and look at the different ways to determine a best or dominant strategy. We also discuss the concepts of Nash Equilibrium and Prisoners’ Dilemma - and learn that it is important to anticipate and take into consideration the actions of the other players. Lastly, we analyse what happens when we change the game from simultaneous (where everybody acts at the same time) to sequential (where players move after each other).
9 videos (Total 68 min), 3 readings, 3 quizzes
9 videos
Game Setting6m
Eliminating Dominated Strategies11m
Nash Equilibrium11m
Prisoners ’ Dilemma3m
Game Setting10m
Backward Induction8m
Credible Threats 10m
Wrap Up 2m
3 readings
How to Use Discussion Forums10m
Get to Know Your Classmates10m
Complete slides for week110m
3 practice exercises
Simultaneous Games10m
Sequential Games10m
Take Care of Your Competitors20m
Week
2Why Firms Work Together
According to economic theory, companies compete with each other in the marketplace. In reality, they are often friendly and cooperate with each other. In this module, we attempt to understand this strategy, and why it is good for the organizations involved. With this, we evaluate the factors that encourage or hinder cooperation and apply them in different examples.
9 videos (Total 61 min), 1 reading, 5 quizzes
9 videos
Reasons for Cooperation3m
Finite Repetition 9m
Backward Induction9m
Infinite Repetition10m
Factors Influencing Cooperation8m
Aggressive Commitment10m
Cooperative Commitment4m
Wrap Up2m
1 reading
Complete Slides Week 210m
5 practice exercises
Reasons for Cooperation6m
Finite Repetition8m
Infinite Repetition8m
Commitment8m
Why Firms Work Together20m
Week
3Complementary Products and Strategic Partnerships
In this module, we introduce complements and discuss what they mean to us in economic terms. We study why companies like to sell their products in a bundle - and how complementarity creates switching costs. We also discuss the importance of that coordination among companies with complementary products. Finally, we look at strategic partnerships as a powerful tool to align companies’ interests in this specific setting.
7 videos (Total 43 min), 1 reading, 4 quizzes
7 videos
Complements: Examples and Definitions7m
Generic Strategies 8m
Positive Externalities 9m
Examples 4m
Strategic Partnerships 7m
Wrap Up3m
1 reading
Complete Slides Week 310m
4 practice exercises
Complements8m
Strategies for Complements8m
Complements and Cooperation8m
Complementary Products and Strategic Partnerships20m
Week
4Entering a New Market
This module is about market entry. We first look at different tools to assess the attractiveness of a market – and then discuss strategies that have proven to be helpful for entering a new market, such as positioning and marketing strategies. We also look from the other perspective, and analyse what established businesses can do to keep new competitors out of the market.
10 videos (Total 81 min), 1 reading, 4 quizzes
10 videos
Market Attractiveness 6m
Structural Entry Barriers12m
Strategic Entry Barriers6m
Commitment / Value Chain Reconfiguration10m
Judo Economics / Niche Market 10m
Structural Entry Barriers / Commitment12m
Limit Pricing / Predatory Pricing 8m
Pre-Emption 5m
Wrap Up3m
1 reading
Complete Slides Week 410m
4 practice exercises
Market Choice and Entry Barriers10m
Entry Strategies8m
Entry Deterrence10m
Entering a New Market20m
4.7
374 Reviews46%
started a new career after completing these courses
39%
got a tangible career benefit from this course
11%
got a pay increase or promotion
Top Reviews
By AA•Jan 11th 2016
I have no previous business experience and I really enjoyed this class. It gave me insight into game theory and marketing and product development concepts. Good pace and good explanation of topics.
By OO•Jul 23rd 2018
I had a great time with Prof. Tobias Kretschmer. The course was really eye-opening for me and gave me a lot of perspective in the business world. Looking forward to the remaining courses for sure.
Instructor
Tobias Kretschmer
ProfessorInstitute for Strategy, Technology and Organization
About Ludwig-Maximilians-Universität München (LMU)
As one of Europe's leading research universities, LMU Munich is committed to the highest international standards of excellence in research and teaching. Building on its 500-year-tradition of scholarship, LMU covers a broad spectrum of disciplines, ranging from the humanities and cultural studies through law, economics and social studies to medicine and the sciences.
About the Competitive Strategy and Organization Design Specialization
Paired with humorous elements and illustrating examples, the Competitive Strategy and Organization Design specialization is the ideal choice for curious individuals who enjoy unique learning experiences and innovative teaching approaches. Its style is likely to appeal especially to young, middle-aged and young-at-heart learners.
The specialization is indended for learners interested in engaging in fundamental theories and concepts of strategy and organization and applying these to practice. Employed professionals and management students will benefit from deepening and refreshing their existing knowledge by means of our specialization. Learners with non-business backgrounds will gain valuable additional business insights complementing their existing knowledge.
Participants will learn to understand and analyze
● behavior of organizations in situations in which strategic decisions are interdependent
● strategies to build up and maintain a customer base
● internal workings of an organization as well as its interaction with the outside world, i.e. partners, complementors and competitors
● the design of an effective organization that can compete, grow and adjust flexibly to different environments
This specialization is the only online learning program in which students can learn and laugh at the same time. That said, we are looking forward to learning and laughing with you!
Frequently Asked Questions
When will I have access to the lectures and assignments?
Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
What is the refund policy?
Is financial aid available?
More questions? Visit the Learner Help Center.
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