Introduce a new product by business strategy:

pick on Strategies: economies of scale, transaction-cost economics, oligopoly theory, Entry, commitment, incentives for innovation, and agency.

To Implement a particular strategy,: Horizontal/ vertical boundaries , market analysis , Organization and positioning should be considered

To successfully formulate and implement strategy a firm must confront four classes of issues:

a. Boundaries of the firm: What should the firm do, how large should it be, and what businesses should it be in? i. These boundaries extend in three different directions: horizontal, vertical, and corporate. 1. Horizontal: how much of the product market should the firm serve? Be a mass market provider or serve some niche? 2. Vertical: what activities should the firm perform itself and what should it purchase? 3. Corporate: what is the set of distinct businesses the firm should compete in?economics of scale/scope, advertising, research,inventories, labor costs, learning curve - horizontal

reason to make and reason to buy,Strategic alliances and joint ventures - vertical

b. Market and competitive analysis: What is the nature of the markets in which a firm competes and the nature of the competitive interactions of firms in those markets?Porter analysis, entry exit

c. Positioning and dynamics: How should the firm position itself to compete, what should be the basis of its competitive advantage, and how should it adjust over time? i. Positioning is how you compete at a point in time (i.e. low cost or differentiated) ii. Dynamics is how a firm accumulates resources and capabilities and how it reacts.

d. Internal Organization: how should the firm organize its structure and systems internally?

Scale, scope, and learning economies are important business considerations that drive decisions around strategy, boundaries a firm chooses, and its organizational structure. In addition, scale, scope, and learning economies can also help explain an industry structure, the nature of competitive advantages, and strategic decisions such as entry, exit, and commitment.