This course aims at providing a framework to think about various issues in business from a perspective of economics: horizontal boundaries of the firm; vertical boundaries of the firm; industry analysis; strategic positioning for competitive advantage; sustaining competitive advantage. The students will develop understanding and skills of how to apply economics principles in business strategy. The goal is to enable students to think strategically in a smart way. The course will address basic analytical tools essential for understanding modern business strategy that is of primary importance for Managers and Economists in the modern fast-changing world. Classes will be a mixture of lecture and critical discussion of theory and practical cases. Students are expected to spend some time for reading cases in advance.