A Fly in the Ointment

A recent blog post, along with a related New York Times article, outlines a dramatic increase in the price of generic ointments. Several factors might account for high prices including:

  • High barriers to entry as regulations require firms to prove that ointments are absorbed in the skin as well as branded products.
  • Oligopoly conditions supported by the barriers since there are only three players in the market (and they are differentiated since they produce different generics).
  • Willingness to pay since doctors and patients are not generally price sensitive when it comes to prescriptions. Continue reading

Jay Barney on Strategy

Jay Barney describes how he teaches Strategic Management for Executive Education, giving examples of Walmart, Southwest Airlines and their success in very tough industries.

 

Quarter-length and Semester-length Simulations

Attention simulation users: It would be great to have a separate page for each simulation below. If you have used it and can summarize strengths, limitations, and some tips for implementing, please submit a full entry on the simulation.

Click the links below to access quarter and semester length simulations

Contributed by Mason CarpenterMason Carpenter

Learning Through Simulations and Exercises

I’ve been using simulations to tie together segments in my class and to give students a better experience with the process of strategy.  It is important to allocate a good chunk of time — from one to three hours — to fully debrief the sim.  This debrief includes some sharing of emotions, since simulations can result in conflict and anxiety — I’ve had teams explode and almost come to blows.  It is useful to point out to participants that although this is a simulation, part of the results are a reflection of the individual themselves, along with their particular role, and the context provided by the simulation.  Three readings that may be helpful regarding sims are (Also see Brian Boyd’s website for additional resources below under OTHER TOOLS & LINKS:

Keys, J. Bernard, Robert M. Fulmer, and Stephen A. Stumpf.  1996.  Microworlds and simuworlds: Practice fields for the learning organization, Organizational Dynamics, Spring.

Orbanes, Phil. 2002. Everything I know about business I learned from Monopoly, Harvard Business Review, March.

Stumpf, Stephen A. and Jane E. Dutton. 1990. The dynamics of learning through management simulations: Let’s dance, Journal of Management Development, 9(2) 7-15.

Contributed by Mason CarpenterMason Carpenter

Industry Profitablity Analysis Opener

“In my opening graduate class I talk about my objective of getting students to think strategiclly. I put up a slide showing industry performance (any industry will work, although the simpler the better). Last semester I used a slide showing downward stock prices in the four largest bagel companies in the U.S. I ask the students why this is happening. We ramble for a few minutes. I then give a very quick overview of what I think is happening. I then return to the OH in the last class to drive home the message that hopefully, they now have the vocabulary and conceptual knowledge to quickly draw some conclusions on their own.”

Cirque du Soleil-Algeria

Great to have these Cirque videos if you teach Blue Ocean Strategy concepts. CAUTION – this material is addictive!

Contributed by Mason CarpenterMason Carpenter

Cirque du Soleil Alegria, Powertrack

Great to have these Cirque videos if you teach Blue Ocean Strategy concepts. CAUTION – this material is addictive!

Contributed by Mason CarpenterMason Carpenter

“O” Cirque du Soleil Resident Show

Great to have these Cirque videos if you teach Blue Ocean Strategy concepts. CAUTION – this material is addictive!

Contributed by Mason CarpenterMason Carpenter

Rav4 Destructive Rivalry Commercial

We often think of industry concentration as an indicator of monopoly profits. However, even in an industry with only two competitors, they can compete in such a way that no above normal profits are realized. This video makes that point in a fairly humorous way.

Contributed by Russ Coff

Game Theory with Professor Ben Polak, 24 1-hr Modules

This course is an introduction to game theory and strategic thinking. Ideas such as dominance, backward induction, Nash equilibrium, evolutionary stability, commitment, credibility, asymmetric information, adverse selection, and signaling are discussed and applied to games played in class and to examples drawn from economics, politics, the movies, and elsewhere. Open Yale Courses provides free and open access to a selection of introductory courses taught by distinguished teachers and scholars at Yale University. The aim of the project is to expand access to educational materials for all who wish to learn.

Click here to access the link:

http://oyc.yale.edu/economics/econ-159

Contributed by Mason CarpenterMason Carpenter

Made to Stick: Creating a Simple Strategy

Dan Heath, co-author of Made to Stick, speaks with Fast Company about running a successful business by keeping things simple.

View the video at Openforum.com

Contributed by Mason CarpenterMason Carpenter

Chris Anderson on Free

Wired’s Editor In Chief Chris Anderson discusses why $0.00 is the future of business. This explores the impact of goods (like bandwidth and storage) that are becoming too cheap to meter.

Contributed by Mason CarpenterMason Carpenter

 

Chris Anderson on the Long Tail

“Wired” editor and author Chris Anderson explains his theory of “The Long Tail,” using the music and film industries as examples. The focus is on how traditional distribution channels have bottlenecks that limit content that would otherwise be demanded. Emerging technologies create distribution channels and the content is now becoming part of the market.

Contributed by Mason CarpenterMason Carpenter

SWOT Analysis Exemplar

A SWOT business analysis is identifying strengths, weaknesses, opportunities and threats of a business plan. Put together a SWOT business analysis with tips from a marketing professor, business entrepreneur and strategy consultant in this free video on business.

Contributed by Mason CarpenterMason Carpenter

The Five Competitive Forces That Shape Strategy

An Interview with Michael E. Porter. Porter’s five competitive forces is the basis for much of modern business strategy. Understand the framework and how to put it it into practice.

Contributed by Mason CarpenterMason Carpenter

The Crisis of Credit Visualized

Crisis of Credit, Parts I and II, can be used to illustrate how short term decisions have long term consequences and to capture how large scale environmental shifts impact business strategy.

Part I:

Part II:

 

Polar Bear vs. Walrus Colony

The BBC nature show Planet Earth contains a battle between a polar bear and a herd of walruses which can be used to tease out a discussion about competition.

Contributed by Mason CarpenterMason Carpenter

Social Learning through Flat World Knowledge

Flat world publishing offers a disruptive business model in academic and textbook publishing. The Ketchen and Short Strategy text is an example of how this is being executed in the strategy field. It is offered for free in the online version.

Mason CarpenterFlat World Knowledge is a great example of a blossoming Blue Ocean Strategy. The Atlas Black excerpt is based on one of their new graphic novels.

Contributed by Mason Carpenter

Atlas Black Trailer

This is part of a case study of Flat World publishing which offers a “novel” business model to disrupt academic publishing.

Socialnomics – English – Short version