| | |
| Summary |
| Please note: The McKinsey Quarterly has agreed to a special arrangement for CEOExpress members that allows member access to their articles. Articles must be clicked on directly through the links below to gain access to this group of articles.
|
The microeconomics of industry supply
Cost is an essential consideration in any business strategy. Running a company in an efficient way is the bread and butter of traditional management, but in some industries, assessing your cost position against the positions of your competitors can have more explicitly strategic implications that are often best understood using concepts from game theory. Understanding a rival's costs often amounts to understanding its supply curve—the amount of goods the organization will produce at a given price and, by extension, the price at which its managers might choose to exit the industry entirely.
Articles provided by The McKinsey Quarterly
© 1992-2003 McKinsey & Company, Inc
|
|
|
