Strategy, analytics and game theory
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This document discusses how strategy, analytics, and game theory can be used to quantify and analyze business strategy. It explains that game theory provides mathematical techniques to find dominant strategies and model economic interactions. Analytics are similar to financial analysis and can quantify differentiation strategy by showing how unique products are as well as enable cost leadership. Geometry such as angles and triangles can also represent market shares, while demand curves allow calculating marginal revenue.
Strategy, analytics and game theory
- 1. Strategy, Analytics and Game Theory Dr. Sreenivas Rajan
- 2. Quantifying Strategy • Competitive Strategy uses game theory and competitive measures to quantify strategy • Core competence uses patent citation network, brand value and cognition • Acquisition strategy depends on the future value of the company and technology potential of targets
- 3. Game Theory and Strategy • Game theory is a mathematical technique • It enables us to find dominant strategy • It provides models that explain the economy • Strategy is benefited by the interaction, monopoly competition and industry structure. • Game theory models situate the company revenues in industry revenues and GDP
- 4. Analytics and Strategy • Analytics is like financial statement analysis • Analytics quantify strategy • Differentiation Strategy requires analytics to show how different the product is. • Secondly, Analytics enable companies to reduce costs and assume cost leadership position.
- 5. Geometry and Strategy • Angles can be calculated to quantify the differentiation of strategy • Company facing competition from two companies can form a triangular market share. • Marginal revenue can be calculated by drawing demand curves.