Industry Analysis

KT&T Communications, not be confused with AT&T Communications, has registered several new operating units in Texas. Those companies, "I Don't Know", "I Don't Care", "It Doesn't Matter", and "Whoever", charge about double the cost of some other long distance companies for operator-assisted long distance calls, the operatorAssociated Press says. The choice comes when the operator asks which long distance company you want to complete your call. "It's not deceptive at all," insists Dennis Dees, president of KT&T. Dees won't say how many calls his new companies has completed, but said "I Don't Care" and "It Doesn't Matter" were the most successful. (AP)

Introduction and Industry Analysis

Professor R. Preston McAfee

Who Am I?

Ph.D. Purdue, 1980, B.A. Florida, 1976 Taught at UWO, UTexas, MIT, U Chicago UTexas, Co-designer, U.S. PCS auction CoCo-Editor, American Economic Review CoFTC Expert: Exxon-Mobil, BP-Arco, ExxonBPMonster/Hotjobs, Rambus Monster/Hotjobs, Author, 60+ articles on

Auctions, Pricing, Antitrust

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Some Strategic Variables Product Features and Quality Target Customers Product Line Product Standardization Technological Leadership Research and Development Product Marketing and Positioning

Market Development and Education

Vertical Integration Cost Reduction Focus Service Provision Warranties Input Pricing Financial Leverage and Debt Government Relations Types of Corporate Divisions

Flow of Internal Communications

Provision of Complementary Goods Brand Identification Geographic Markets Distribution Channels Product Pricing

Accounting System Delegation of Decision-making Build to Order or Inventory Inventory levels

Goals Of This Course

Identify important factors for decisions

What information is useful?

Identify how factors fit together

Necessarily partial, 2n problem

Identify candidate strategies Evaluate candidate strategies

Assessment

Class Participation Case Writeups Presentation Final Paper 20% 25% 15% 40%

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Class Participation - 20%

Will...