In contrast to traditional microeconomics, industrial economics studies the structure of an industry and firms’ behavior under imperfect competition. But different from traditional industrial economics which focuses on social welfare and government regulations under market failure, we focus on how to formulate competitive strategies of the firm under market imperfections. This course provides students with an in-depth conceptual framework for understanding the fundamental determinants of competition in industries and the factors that shape the competitive success and failure of firms. This conceptual base is then applied to analyze firms' performance and the problem of strategy formulation at the business level as a basis of valuation.