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IO economics suggests a causal flow from market structure to conduct and performance. 1 Industrial organization (IO) economics gave formal expression to the prominent importance of competition to firms' success. The very language of corporate strategy is deeply imbued with military references-chief executive " officers " in " headquarters, " " troops " on the " front lines, " and fighting over a defined battlefield.
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Such focus on the competition traces back to corporate strategy's roots in military strategy.
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Today, one can hardly speak of strategy without involving the language of competition: competitive strategy, competitive benchmarking, building competitive advantages, and beating the competition. F or twenty-five years, competition has been at the heart of corporate strategy.
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