Chapter XIII of the value of competing networks and relationships

Value network of competing and

Manufacturers of action to create much value for customers, vendors can create their own how much interest will be the impact of the actions of other manufacturers.
o o Competition among firms Cooperation between firms

Game and value network

Game Theory o o o Prisoners dilemma A, B, under the rational projection, not the strategy chosen not to plead guilty Competitors cut prices, manufacturers face the decision whether to lower prices: If you do not cut prices, competitors will be able to capture the market; if the price cuts, which often get paid less than the price of the compensation that neither

Game and value network (continued)

Coward Game o A or B who believe they will let the other side straight, but if both sides have been straight to show their faith, and indeed execution, the result would be a tragedy.

Companies often will release a new vendor if reckless dare to enter their own niche, they will be hitting the signal, is a show of their faith will be straight

Game and value network (continued) Competing theories and the value network
o Game participants are eager to secure the greatest self-interest, to expand their own interests in two ways Under the same allocation ratio, and other Game players work together to create larger pie and create more common interests On the cake in the original allocation for the largest proportion of the expense of the interests of others to meet their

Game and value network (continued) Change the Game

o Game of the five elements Participants (Players): value network of suppliers, customers, competitors, complementors, and the other five members of the company itself Value-added (Added Value): individual participant contributions for the Game Rules (Rules): Game of the basic structure that can come from law, custom or contract

Tactics (Tactics): the actions taken by the participants Category (Scope): a Game Game as an independent, nonoccurrence with other Game related, the participants of the encompasses the additional values, rules, and tactics

Game and value network (continued) Change the Game

o Changes in participants o Introduction of new participants correctly Competitors out of Game Adjust its product attributes and trading conditions to improve their value-added o Establish and change the rules Reasonable rules in order to allow collaboration between complementary businesses Change the rules to improve their income generation of

Increase the added value

Game and value network (continued) Change the Game

o The use of tactical o Change the status of real competition Change the participants' cognitive Little to the original combination of Game Competition Bureau will be cut into a number of small Game

Change the competitive context

Situation of competition and the evolution of cooperation Multiple roles of the participants
o o Create market: competitors become complementors Divide up the market: competition between complementary Similar to the complementary role of competition between Complementarity between the different roles of competition

Situation of competition and the evolution of cooperation (continued) Multiple roles of the participants
o Multiple perspectives of competitors The relationship between the survival of the fittest Can not be too oppressive competitors, or competitors will be more aggressive Seek to find win-win opportunity with competitors

Situation of competition and the evolution of cooperation (continued) Motivation for cooperation with industry
o Create entry barriers Mutual cooperation, achieve economies of scale associated advantages and a high degree of customer switching costs o To create industry standards

Imitate each other Competitors began to seek an alliance cooperation, within the industry may worry less and less suitable for a coalition The other hand, worry that competitors alliance will lead their forces, which will actively look for partner

Situation of competition and the evolution of cooperation (continued) Industry, community cooperation and competition situation
o o Cooperation within the community will enhance the competitive advantage of industrial clusters Competition within the industry community, may help strengthen the industrial community functions, but must be careful not to waste of resources, weaken the competitive advantage of industrial clusters o o Industry, competition between communities, often to enhance industry collaboration within the community Between communities of different industry standards or if there is a common compatible allies, will reduce the hostility between the form of industrial communities

Situation of competition and the evolution of cooperation (continued) The evolution of competition and cooperation between
o o Multi-point contact between the Long-term relationship

o o

Accumulation of "relationship capital" Third party relationships

The relationship between the three types of participants

The impact of the industrial and cooperative action

Industrial structure o The industry is equal Use of cooperative alliance strategy, trying to catch up with industry leading position The weak position of the company, will more actively seek cooperation, so the competitors within the industry will become more evenly matched o The degree of similarity with the industry's products and strategy differences Cooperation strategy with the industry's products will become increasingly similar Major businesses have similar products and services, but the strategy is quite different way of confrontation or competition, the competition becomes more intense o o National differences Exit barriers Partner to tie him down, exit barriers will therefore increase To compete, it will be more resilient than independent vendors, it will not easily exit

Dynamic competition

Enter Cooperative action to lower the barriers to entry, and then to raise entry barriers

Ability to obtain Help manufacturers more quickly obtain the necessary resources, technology, and information Shorten new product development time and time to market, so that the pace of industrial innovation faster pace of competition has become more dynamic compact