This new textbook examines how industry environment and business strategies determine company performance. It provides an introduction to the economics of business strategy, introducing key concepts drawn from microeconomics, industrial organisation, business economics, business environment, organisation studies and strategic management. The book is written for the growing number of courses at MBA, undergraduate, and foundation level where readers require not only an integrated theoretical framework in economics and management, but also the practical skills and knowledge to examine how and why firms behave in certain ways in the real world. INDICE Introduction Part I: Introduction to Markets and Production 1. Markets and Prices 2. Production and Costs Part II: Analysis of Industry 3. Theoretical Analysis of Industry I: Perfect Competition, Monopoly and Monopolistic Competition 4. Theoretical Analysis of Industry II: Oligopoly 5. Methodological Approaches to Competitive Analysis 6. Practical Analysis of Industry Part III: Analysis of Business Strategy 7. Advertising and Product Differentiation 8. Research, Development and Innovation 9. Horizontal and Vertical Integration 10. Diversification Part IV: Analysis of Government Policy 11. Government and Business Glossary