About this course: 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.
Created by: Ludwig-Maximilians-Universität München (LMU)
Taught by: Tobias Kretschmer, Professor
Institute for Strategy, Technology and Organization
| Basic Info | Course 1 of 4 in the Competitive Strategy and Organization Design Specialization |
| Commitment | 10 hours of videos and quizzes |
| Language | English, Subtitles: Chinese (Simplified) |
| How To Pass | Pass all graded assignments to complete the course. |
| User Ratings |
Syllabus
WEEK 1
Take 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, 3 readings, 2 practice quizzes
- Reading: How to Use Discussion Forums
- Reading: Get to Know Your Classmates
- Reading: Complete slides for week1
- Video: Game Setting
- Video: Eliminating Dominated Strategies
- Video: Nash Equilibrium
- Video: Prisoners ’ Dilemma
- Practice Quiz: Simultaneous Games
- Video: Game Setting
- Video: Backward Induction
- Video: Credible Threats
- Practice Quiz: Sequential Games
- Video: Wrap Up
Graded: Take Care of Your Competitors
WEEK 2
Why 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, 1 reading, 4 practice quizzes
- Reading: Complete Slides Week 2
- Video: Reasons for Cooperation
- Practice Quiz: Reasons for Cooperation
- Video: Finite Repetition
- Video: Backward Induction
- Practice Quiz: Finite Repetition
- Video: Infinite Repetition
- Video: Factors Influencing Cooperation
- Practice Quiz: Infinite Repetition
- Video: Aggressive Commitment
- Video: Cooperative Commitment
- Practice Quiz: Commitment
- Video: Wrap Up
Graded: Why Firms Work Together
WEEK 3
Complementary 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, 1 reading, 3 practice quizzes
- Reading: Complete Slides Week 3
- Video: Complements: Examples and Definitions
- Practice Quiz: Complements
- Video: Generic Strategies
- Video: Positive Externalities
- Practice Quiz: Strategies for Complements
- Video: Examples
- Video: Strategic Partnerships
- Practice Quiz: Complements and Cooperation
- Video: Wrap Up
Graded: Complementary Products and Strategic Partnerships
WEEK 4
Entering 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, 1 reading, 3 practice quizzes
- Reading: Complete Slides Week 4
- Video: Market Attractiveness
- Video: Structural Entry Barriers
- Video: Strategic Entry Barriers
- Practice Quiz: Market Choice and Entry Barriers
- Video: Commitment / Value Chain Reconfiguration
- Video: Judo Economics / Niche Market
- Practice Quiz: Entry Strategies
- Video: Structural Entry Barriers / Commitment
- Video: Limit Pricing / Predatory Pricing
- Video: Pre-Emption
- Practice Quiz: Entry Deterrence
- Video: Wrap Up
Graded: Entering a New Market
WEEK 5
Why Worry About Research and Development
In the context of R&D, a number of important strategic questions arise consistently; in this module, we take a closer look at these questions. Though many innovations are created by a stroke of luck, it seems that the majority of innovations are created because their inventors actively strive towards this specific innovation and differentiation strategy.
9 videos, 1 reading, 3 practice quizzes
- Reading: Complete Slides Week 5
- Video: Stages of R&D
- Video: Types of Innovation
- Practice Quiz: R & D and Innovation
- Video: Competitive Market
- Video: Monopolist
- Video: Monopolist with Threat of Entry
- Practice Quiz: Incentives to Innovate
- Video: Innovation under Competition
- Video: Sleeping Patents
- Practice Quiz: Innovation & Competition
- Video: Wrap Up
Graded: Why Worry About Research and Development
WEEK 6
Designing Products Wisely
In this module, we focus on strategic aspects of product design and pricing strategy. We analyse how companies can adjust their products in a way that lowers the competitive pressure in the market. Later on, we look at some generic strategies for product design and pricing – and discuss the problems related to being stuck between these strategies.
9 videos, 1 reading, 3 practice quizzes
- Reading: Complete Slides Week 6
- Video: Theoretical Model
- Video: Adjusting Model Assumptions
- Practice Quiz: Bertrand Paradox
- Video: Introduction
- Video: Horizontal Differentiation
- Video: Vertical Differentiation
- Practice Quiz: Product Differentiation
- Video: Generic Strategies
- Video: Stuck in the Middle
- Practice Quiz: Pricing and Product Decisions
- Video: Wrap Up
Graded: Designing Products Wisely
Graded: Final-exam
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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.
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| Access to course materials | Available |
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Ratings and Reviews
Excellent introduction to competitve strategy and game theory.
Thanks!
Clear, simple and efficient.
Easy to comprehend and with a lots of examples also an entertaining course.
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FB
Amazing course. This is by far the greatest MOOC I've taken, and this is my 10th. The lecturer is so fluent in his explanation, yet paced and clear. There are some MOOCs that by the fourth week start to be kind of boring, but this is definitely not the case. Content is extremely good, it offers a managerial perspective with good economic background. Congratulations to the team and teacher involved in this course.