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December 28, 2019

Economic Analysis

Economics, Harvard

A recurring phenomenon in major economies is the presence of superstar or mega firms. Firms that operate in multiple markets, enjoy large market shares across the globe, experience high growth over a long duration, exercise market power and earn phenomenal profits. Superstar status remains contestable; it is common to fall from the top. From the 1950s to the 1980s, companies like AT&T, GM, and Dupont were the standouts. Things started to change in the 1990s. Microsoft showed up and, after 2000, tech giants like Alphabet, Amazon and Apple edged out GE and Coca-Cola. GE now wishes to restore its past glory by reducing its almighty size. The essay requires you to:

1. Characterise superstar firms,
2. Explore the technological conditions, mechanisms and corporate growth strategies that have led to the rise of superstar firms using economic concepts and theories, and, more importantly,
3. Develop ideas how superstars can maintain superstardom status and avoid decline over time.

More details in the coursework attachment.

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