Why do some companies thrive while others in the same industry languish? How can a struggling firm achieve higher annual earnings? What allows new corporations to become successful in highly competitive industries? In this book, now updated and expanded, Sharon Oster shows that combining a sound understanding of economic and managerial principles can make a striking difference in the quality of the strategic planning of an organization and provide guidelines for effective corporate strategies.The third edition of Modern Competitive Analysis includes new material on game theory, added value analysis, and strategic intent. Examples are drawn from modern network industries and more attention is paid to newly deregulated markets. Unusually broad in scope, with many examples from large and small companies, service firms, manufacturers, foreign and American organizations, as well as non-profit corporations, the book emphasizes an economic approach to strategic planning, using the most recent theories to illuminate situations faced by businesses today. Covering new and important areas in economics not treated in other management and strategic planning books, and couched in clear terms that make these concepts especially accessible, Modern Competitive Analysis is a fundamental resource to the managers of today and tomorrow.