The industrial organization branch of economics focuses on markets, industries, and the position, or possible positions, of organizations within the industries. This branch of economics has been represented in mainstream approaches to strategy since the 1960s, being reflected in Harvard's Business Policy teachings, BCG's experience curve, growth share matrix, deterministic approach to strategic planning, and the works of Porter and Treacy & Weirsema. Its emphasis is on what is outside the organization and how the organization should position itself to best take advantage of that.

Industrial organization contrasts with organizational economics, with its focus on the firm and the resource-based view of strategy.