1. Policy Trends & Dynamic Advantage
Public policy
Visible industry specific regulation
General policy environment
Public policy can create, sustain, undermine or destroy firm advantage and redefine the competitive arena
Firms can influence during policy window and use public arena to protect their resource investments

3. Policy Trends
Liberalization, deregulation, privatization, marketization
Social and environmental activism
Politicization – minority groups, interest groups
Power of ideas – equality and liberty

4. Contestability Theory and Unbundling
Regulation of integrated monopoly markets challenged by contestability theory
Segment a bundled industry into various markets and determine if they are contestable or monopoly
With free entry and exit, contestable markets can be opened for competition
Monopoly markets can be opened to “competition for the market” by concession, lease or competition by substitutes
Unbundling of infrastructure industries

7. Social and Environmental Regulation
Emergence of strong public interest movement in market oriented advanced economies
Emergence of interest in private property rights, rule of law, and civic society in transitional economies

11. Policy Windows and Multiple Players
Emergence of opportunities for action on given initiative
Recognize opening of policy window, provide solution, and overcome opposition
Understand distribution of benefits and cost among multiple players and nature of political competition
Ability to mobilize quickly

13. Strategies for Seeking Dynamic Advantage
Some public policies lessen or add constraints
Determine whether public policy initiative creates an incentive
to join with competitors, or
set the firm apart from competitors