Foundations of Strategy from Coursera

Strategy is a complex field and intrinsically related to economics. In this first week of this course you will learn the basic logic of how firms and markets function by using economic logic from a distinctly strategic perspective.

The economic logics discussed in the first week have shaped the field of strategic analysis from very early on. Porter’s Five Forces – probably the most well-known strategic analysis tool – directly builds on the notion of market structures and helps us to get a deeper understand of how the competitive environment affects the ability of firms to generate true economic profits. In this week, we´ll look at how Porter's Five Forces are related to market structures, economies of scale, and begin to touch on how firms leverage these to create competitive advantage.

Week three, we will move away from exclusively considering the external structure of an industry as the source of competitive advantage and instead focus our view on the internal resources and capabilities within firms – and the associated “resource based view” to look at how internal resources and capabilities play out in competitive situations.

Looking through the lens of the five forces at the industry, or through that of the resource-based view at firm internal resources and capabilities, feels a bit like swings of a pendulum – and, indeed, strategic theory and practice over the last decades has veered from a near-exclusive focus on the environment to being entranced by firms’ core capabilities. However, to get the full picture of where your firm stands (and where it and its industry may move) requires us to consider both of these perspectives! In this final week we will work on this crucial integration by building our understanding of what a competitive advantage truly is – and what distinct forms it can take.

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Syllabus

Strategy and Value Creation

Strategy is a complex field and intrinsically related to economics. In this first week we will establish the basic logic of how firms and markets function by using economic logic from a distinctly strategic perspective.

Competitive Advantage – The External Perspective

Competitive Advantage - The Internal Perspective

This week, we will move away from exclusively considering the external structure of an industry as the source of competitive advantage and instead focus our view on the internal resources and capabilities within firms – and the associated “resource based view” to look at how internal resources and capabilities play out in competitive situations.

Competitive Advantage – The Holistic View

Looking through the lens of the five forces at the industry, or through that of the resource based view at firm internal resources and capabilities, feels a bit like swings of a pendulum – and, indeed, strategic theory and practice over the last decades has veered from a near-exclusive focus on the environment to being entranced by firms’ core capabilities. However, to get the full picture of where your firm stands (and where it and its industry may move) requires us to consider both of these perspectives! In this final week we will work on this crucial integration by building our understanding of what a competitive advantage truly is – and what distinct forms it can take.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Explores the foundations of economics as they apply to strategy, which is key for learners with a business background

Taught by Carl Kock, recognized for their work in economics and strategy

Examines economic principles through a strategic lens to enhance understanding of strategy

Emphasizes Porter's Five Forces as a fundamental tool for competitive analysis

Develops understanding of resource-based view to identify internal sources of competitive advantage

Integrates external and internal perspectives to provide a well-rounded view of competitive advantage

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Foundations of Strategy with these activities:

Review basic economic concepts

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Strengthen your foundational understanding of economic principles to enhance your comprehension of the course material.

Browse courses on Economics

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Review your lecture notes or textbook chapters on basic economic concepts.
Complete practice problems or quizzes to test your understanding.

Watch video tutorials on applying strategic analysis tools

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Enhance your comprehension of strategic analysis tools through guided video tutorials.

Browse courses on Strategic Analysis

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Search for video tutorials on platforms like YouTube or Coursera.
Choose tutorials that cover specific tools or concepts you want to learn more about.
Take notes and actively engage with the material.

Read 'Economics and the Firm' by Kenneth E. Boulding

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Reinforce the economic principles covered in Week 1 through the lens of Kenneth E. Boulding's insights.

View Melania on Amazon

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Purchase the book through an online retailer or library.
Read the book at your own pace, taking notes on key concepts and ideas.
Summarize the main arguments and theories presented in the book.
Identify and explain how the book's insights relate to the course material.

Six other activities

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Complete practice questions on Porter's Five Forces and the RBV

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Strengthen your understanding of these frameworks by practicing their application through targeted exercises.

Browse courses on Porter's Five Forces

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Find practice questions online or in textbooks.
Attempt the questions and check your answers.
Identify areas where you need more practice.

Create a collection of case studies or examples of competitive advantage

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Reinforce your understanding of competitive advantage by collecting and analyzing real-world examples.

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Gather case studies or examples from reputable sources such as business journals, industry reports, or academic papers.
Organize the collection based on different types or industries of competitive advantage.
Summarize the key takeaways and lessons learned from each case study.

Conduct an industry analysis using Porter's Five Forces

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Apply the concepts learned in Week 2 by conducting a comprehensive analysis of an industry using Porter's Five Forces framework.

Browse courses on Industry Analysis

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Choose an industry to analyze.
Gather data on the industry's structure, conduct surveys, and interview industry experts.
Identify and assess the five forces of competition (entry barriers, supplier power, buyer power, threat of substitutes, and rivalry among existing competitors).
Develop recommendations based on your analysis.
Present your findings in a report or presentation.

Create a visual representation of the Resource-Based View (RBV)

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Deepen your understanding of the RBV by creating a visual representation that illustrates its key concepts and components.

Browse courses on Resource-Based View

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Identify the key concepts and components of the RBV.
Choose a visual format, such as a diagram, infographic, or flowchart.
Design your visual representation, ensuring clarity and accuracy.

Attend industry events and conferences

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Expand your professional network and gain insights by attending industry gatherings.

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Research industry events and conferences relevant to your field.
Register and attend the events.
Connect with professionals, exchange ideas, and explore new opportunities.

Develop a competitive advantage strategy for a real-life company

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Integrate the concepts learned throughout the course by developing a comprehensive competitive advantage strategy for a company.

Browse courses on Competitive Advantage

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Select a real-life company to analyze.
Conduct a thorough analysis of the company's industry, competitors, and internal resources.
Identify potential competitive advantages.
Develop a strategy to leverage these advantages.
Create a detailed plan for implementing the strategy.

Career center

Learners who complete Foundations of Strategy will develop knowledge and skills that may be useful to these careers:

Corporate Strategy and Development Manager

Corporate Strategy and Development Managers advise executives on long-term strategic planning, analyzing economic trends and their impact on the organization, and proposing strategic initiatives to meet business goals. A background in the course's study of market dynamics, competitive advantage, and value creation can be highly valuable for this role.

See salaries and explore the career path for Corporate Strategy and Development Manager

Management Consultant

Management Consultants provide advisory services to organizations on strategy, operations, and technology, helping them improve their performance and achieve their goals. The course's emphasis on understanding industry dynamics, competitive advantage, and resource allocation can be highly beneficial for success in this role.

See salaries and explore the career path for Management Consultant

Product Manager

Product Managers are responsible for the lifecycle of a product, from its planning and development to its launch and marketing. The course's focus on market analysis, competitive strategy, and value creation can be highly valuable for Product Managers in understanding market dynamics and developing successful products.

See salaries and explore the career path for Product Manager

Investment Analyst

Investment Analysts evaluate and recommend investments for clients, taking into account economic conditions, market trends, and company performance. The course's emphasis on understanding industry dynamics, competitive advantage, and economic logic can be highly beneficial for Investment Analysts in making informed investment decisions.

See salaries and explore the career path for Investment Analyst

Marketing Manager

Marketing Managers develop and execute marketing campaigns to promote products or services, with the goal of increasing sales and brand awareness. The course's focus on market dynamics, consumer behavior, and competitive advantage can be highly valuable for Marketing Managers in understanding target audiences and developing effective marketing strategies.

See salaries and explore the career path for Marketing Manager

Business Analyst

Business Analysts analyze business processes and data to identify areas for improvement and recommend solutions. The course's emphasis on understanding industry dynamics, competitive advantage, and economic logic can be highly beneficial for Business Analysts in understanding business needs and developing effective solutions.

See salaries and explore the career path for Business Analyst

Operations Manager

Operations Managers oversee the day-to-day operations of an organization, ensuring efficient production and delivery of products or services. The course's focus on understanding industry dynamics, competitive advantage, and resource allocation can be highly beneficial for Operations Managers in optimizing operations and improving efficiency.

See salaries and explore the career path for Operations Manager

Financial Analyst

Financial Analysts evaluate the financial performance of companies and make recommendations on investments. The course's emphasis on understanding industry dynamics, competitive advantage, and economic logic can be highly beneficial for Financial Analysts in understanding company performance and making informed investment decisions.

See salaries and explore the career path for Financial Analyst

Entrepreneur

Entrepreneurs start and run their own businesses, taking on the risks and rewards of ownership. The course's emphasis on understanding industry dynamics, competitive advantage, and value creation can be highly valuable for Entrepreneurs in developing successful business models and strategies.

See salaries and explore the career path for Entrepreneur

Market Researcher

Market Researchers gather and analyze data on consumer behavior, market trends, and industry dynamics to help organizations make informed decisions. The course's emphasis on understanding industry dynamics, competitive advantage, and market analysis can be highly beneficial for Market Researchers in conducting effective research and providing valuable insights.

See salaries and explore the career path for Market Researcher

Sales Manager

Sales Managers lead and motivate sales teams, setting targets and developing strategies to achieve sales goals. The course's emphasis on understanding industry dynamics, competitive advantage, and value creation can be highly beneficial for Sales Managers in developing effective sales strategies and managing sales teams.

See salaries and explore the career path for Sales Manager

Supply Chain Manager

Supply Chain Managers oversee the flow of goods and services from suppliers to customers, ensuring efficient and cost-effective delivery. The course's emphasis on understanding industry dynamics, competitive advantage, and resource allocation can be highly beneficial for Supply Chain Managers in optimizing supply chains and improving efficiency.

See salaries and explore the career path for Supply Chain Manager

Economist

Economists study and analyze economic data and trends to provide insights on economic issues and policies. The course's emphasis on understanding economic logic, market dynamics, and competitive advantage can be highly beneficial for Economists in developing economic models and forecasts.

See salaries and explore the career path for Economist

Policy Analyst

Policy Analysts research and analyze policy issues to inform policy decisions. The course's emphasis on understanding economic logic, market dynamics, and competitive advantage can be highly beneficial for Policy Analysts in developing effective policies and analyzing their potential impact.

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Teacher

Teachers educate students at various levels, providing instruction and guidance in different subjects. The course's emphasis on understanding economic logic, market dynamics, and competitive advantage may be beneficial for Teachers in developing lesson plans and teaching students about economic concepts.

See salaries and explore the career path for Teacher