Understanding Co Opetition Using The Parts Strategy
- 1. U NDERSTANDING C O - OPETITION USING THE PARTS STRATEGY
- 2. P RESENTATION E NDEAVOR : Concept of co-opetition Concept of Value Net Introduction to Parts strategy Using Players Strategy Using Added Value Strategy Using Rules Strategy Using Tactics Using Scope
- 3. C O -O PETITION Business is a game. Played with an win-lose agenda. Market is a battle ground But the fact is most businesses succeed only if others also succeed. Business is a real game; if only one player can win after the others fail; all those who fail would not like to participate in future to play. Therefore, in business its worthwhile to cooperate and compete simultaneously with an intention to not snatch others share alone but to expand the overall market pie to be shared by all the players.
- 4. VALUE NET Customers Competitors/supplementors Complementors Company Suppliers
- 5. PARTS S TRATEGY PARTS Strategy as tool to CHANGE THE GAME! The BIG PICTURE to be analyzed by any company: Understanding the customers, suppliers , competition and complementors: Players Understanding the value they offer: Added Value To play the game of business understand its rules: Rules Game is played with: Tactics Every game has a scope: Scope(linking PART)
- 6. P→ P LAYERS 3 Options for using the Players Strategy Become one Change the Players Include/invite one or more
- 7. B ECOMING A PLAYER .. Strong Moderate Weak Enter with a bang Get paid to play Get paid to play Enter the bidding game Challenge the Don’t hesitate to monopoly challenge the monopoly E.g.: Holland sweetener v/s NutraSweet How to get paid Reasons to substantiate the payment to play Ask for bidding contributions Time Request guarantees Money Ask for information access Fear of Retaliation Bid for more than one business Customer & competition pressure Ask the price to capture the Your move may or may not affect business your competition but will surely affect yours.
- 8. B RINGING IN PLAYERS Who??? How??? Pay them to play Customers Educate the market Suppliers Become your own customer/supplier/competitor/complementor Subsidize the entry and invite followers Complementors Form a buying coalition Patent your technology competitors Create sources to encourage buying your technology
- 9. C HANGING PLAYERS Step one: assess your own added value High= Play as Low= Find ways you wish to get play
- 10. A DDED VALUE Added value Monopoly Competition Relationship: •Monopoly money Competition: Imitation: Create loyalty •Virtuous circle Trade off Healthy Say thank you •Limiting supply Trade on unhealthy Low competition High competition Changing added value
- 11. R ULES Changing rules is complex as it includes the risk of: Legal penalty Exclusion from the market!
- 12. R ULES CONT.. Rules Contracts Mass market Government •Rebates Customers Suppliers •MFC: Cust. Perspective •Take contracts Supplier perspective •MCC: +ve , -ve •Pay contracts Note: remember application of any strategy is open to all. Thus all players are open to change the game the way they wish to
- 13. TACTICS -Changing the game by changing the perceptions Tactics: perception=fog Lift up the fog Preserve the fog Stir up new fog •Pass credibility test •Hide information •Create complexity •Fail credibility test •negotiate •Shape opinions Eg. : audits, (disagree to agree) random checks, bluff, hp printers, digicam, stock indices
- 14. S COPE -Creating link in PART Scope Players Added value Rules Tactics •Play judo •Length of contract •Threats •Play sumo •Discounted value •Promises
- 15. C ONCLUSION Business is the game where many winners could co exist and continue playing. Always look at the larger picture Any step taken should be backed by a long term future Competition is valuable Monopolies are easy targets
- 16. Thank you!!!