Corporate Strategy for New Markets (Department of Economics)
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Based on École Polytechnique’s world-class record of excellence in the applied sciences, the Corporate Strategy for New Markets Graduate Degree offers you the unique opportunity to gain a complete, economics-based strategic understanding of new and transforming markets in 21st century industry.
Operating in a world of constant flux
With technology permeating every sector of the economy, the increasingly frantic pace of innovation can result in disruption at any level of industry. Corporate giants can suddenly find themselves on the decline, displaced by the meteoric rise of disruptive newcomers – see Uber and Airbnb’s similar impacts in their shake-up of the transport and hospitality sectors.
Disruption can come from many sources: a new market organization, new technologies, regulatory changes, to name a few. Whatever the context, however, technological innovation is never the single, straightforward cause. As markets transform, they also become more difficult to analyze using traditional methods – not to mention to navigate.
New market organizations, or markets that become more complex, tend to shake up established patterns. In two-sided markets, the age-old identification of user and customer no longer holds: this is the case, for instance, with Google relative to its users and advertisers. “Platform markets”, on the other hand, derive value from introducing a new intermediary between provider and customer, as seen with hotel booking sites or music streaming companies.
As for new technologies, they can revitalize an aging sector just as they may help spur an entirely new economy. The exploration and production industry provides an example of this with the recent shale gas revolution. Closer to home, 3D printing is full of untapped potential and may very well revolutionize our relationship with manufacturing by making “homemade” the new normal.
Economic, political and societal trends are another factor, especially when expressed through regulatory changes. European energy policy integration has broken up national monopolies and paved the way for the creation of new electricity spot and futures markets, for example. Similarly, supranational agreements on limiting emissions have had the same effect on carbon trading.
A multidisciplinary approach
Every one of these examples includes significant economic, business, strategic and operational components. The capacity to foresee such developments is essential for any corporate strategy aimed at meeting the challenges of the 21st century economy.
A sound basis for these strategies can be found in quantitative methods, such as statistics and econometrics, which can make sense of the high speed at which these new markets evolve and operate. They provide an approach better suited to analyze competitive environments under conditions of uncertainty, especially in the age of big data.
This is the foundation upon which the Corporate Strategy for New Markets Graduate Degree is based, offering students the opportunity to embrace these new challenges head on.