ECONOMIC TOOLS FOR TELECOMMUNICATIONS STRATEGISTS

Because a firm's plans are impinged upon by a variety of market forces, a set of microeconomic tools should necessarily be applied to strengthen strategic forecasting and policy formulation. There exists a body of evidence in strategic planning which confirms that an understanding of supply and demand dynamics, elasticity, profit maximization, substitution analysis, and indifference curves are essential devices to calibrate strategy and probable competitive response [1]. While planning must address variables outside the domain of economic analysis—politics, social trends, and technological innovation, among them—there is little doubt that the tools described below can be of great assistance in clarifying the competitive landscape and informing the strategic management process.strategy, tools, telecommunication