The objective of this course is to provide the participants with the essential industrial economic knowledge and skills that are relevant for business success. By the end of this course, the participants will be able to:

• Identify and explain the key concepts and principles of industrial economics, such as market structure, market power, entry barriers, differentiation, innovation, etc.
• Apply the industrial economic way of thinking to analyze the behavior and decisions of firms and industries
• Understand the different types of industry structures, such as perfect competition, monopoly, oligopoly, monopolistic competition, etc., and their implications for business
• Recognize the role and impact of technology, innovation, regulation, and policy on industries and firms
• Evaluate the benefits and costs of various business strategies, such as pricing, advertising, product development, mergers and acquisitions, etc.

This course is designed for non-economics professionals who want to learn or refresh their knowledge of industrial economics and its relevance to business. It is suitable for anyone who works in or interacts with the business sector, such as managers, entrepreneurs, consultants, analysts, marketers, accountants, lawyers, etc.

Taking this course will help the participants to:

• Develop a solid foundation and understanding of industrial economics and its importance for business
• Enhance their critical thinking and problem-solving skills
• Improve their decision-making and strategic planning abilities
• Increase their awareness and appreciation of the industrial environment and its challenges and opportunities for business
• Develop their confidence and competence in applying industrial economic concepts and tools to real-world business situations

Day One:

Introduction to Industrial Economics and Market Structure

• What is industrial economics and why is it important for business?
• The industrial economic problem: profit maximization under uncertainty
• The industrial economic way of thinking: rationality, incentives, strategic interaction, etc.
• The concept of market structure: dimensions, determinants, and classification
• The measurement of market structure: concentration ratios vs Herfindahl-Hirschman index

Day Two:

Perfect Competition and Monopoly: The Extremes of Market Structure

• What are perfect competition and monopoly and how do they differ from each other?
• The characteristics of perfect competition: many sellers, homogeneous products, free entry and exit, etc.
• The profit maximization rule under perfect competition: price equals marginal cost
• The characteristics of monopoly: one seller, unique product, high entry barriers, etc.
• The profit maximization rule under monopoly: marginal revenue equals marginal cost

Day Three:

Oligopoly and Monopolistic Competition: The Middle Grounds of Market Structure

• What are oligopoly and monopolistic competition and how do they differ from each other?
• The characteristics of oligopoly: few sellers, interdependent decisions, strategic behavior, etc.
• The models of oligopoly: Cournot vs Bertrand vs Stackelberg vs kinked demand curve
• The characteristics of monopolistic competition: many sellers, differentiated products, free entry and exit, etc.
• The profit maximization rule under monopolistic competition: price equals average total cost

Day Four:

Technology, Innovation, and Regulation: How They Affect Industries and Firms

• What are technology, innovation, and regulation, and why are they important for industries and firms?
• The concept of technology: types, sources, and diffusion
• The concept of innovation: types, stages, and determinants
• The concept of regulation: objectives, instruments, and effects
• The interaction between technology, innovation, and regulation: complements vs substitutes vs trade-offs

Day Five:

Business Strategy: How Firms Compete and Cooperate in Industries

• What is business strategy, and why is it important for firms?
• The types of business strategy: cost leadership vs differentiation vs focus
• The tools of business strategy: pricing, advertising, product development, mergers and acquisitions, etc.
• The benefits and costs of business strategy: profitability vs risk vs sustainability
• The evaluation of business strategy: SWOT analysis vs Porter’s five forces analysis vs value chain analysis

To enhance learning and practical application of concepts, the training course will use a combination of interactive lectures, case studies, group discussions, practical exercises, and real-world examples. Participants will also get the chance to collaborate on group projects and create action plans adapted to the needs of their respective organizations.