UNDERSTANDING CO-OPETITION

USING THE PARTS STRATEGY

PRESENTATION ENDEAVOR:

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

CO-OPETITION

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.

VALUE NET

Company

Customers

Suppliers

Co

mp

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ors

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pp

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en

tors

Co

mp

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PARTS STRATEGY

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)

P→ PLAYERS

3 Options for using the Players Strategy

Become one

Include/invite one or more

Change the Players

BECOMING A PLAYER..

Strong Moderate Weak

Enter with a bang Get paid to play Get paid to play

Enter the bidding game Challenge the monopoly

Don’t hesitate to 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 business

Your move may or may not affect your competition but will surely affect yours.

BRINGING IN PLAYERS

How???

Pay them to play

Educate the market

Become your own customer/supplier/competitor/complementor

Subsidize the entry and invite followers

Form a buying coalition

Patent your technology

Create sources to encourage buying your technology

Who???

Customers

Suppliers

Complementors

competitors

CHANGING PLAYERS

Step one: assess your own added value

High= Play as you wish

Low= Find ways to get play

ADDED VALUE

Added value

Monopoly Competition

Relationship:Create loyaltySay thank you

Competition:Trade off Trade on

•Monopoly money•Virtuous circle•Limiting supply

Imitation:Healthy

unhealthy

Changing added value

Low competitionHigh competition

RULES

Changing rules is complex as it includes the risk of:

Legal penalty

Exclusion from the market!

RULES CONT..

Mass market

Rules

GovernmentContracts

SuppliersCustomers

•MFC: Cust. PerspectiveSupplier perspective

•MCC: +ve , -ve

•Take contracts

•Pay contracts

•Rebates

Note: remember application of any strategy is open to all. Thus all players are open to change the game the way they wish to

TACTICS-Changing the game by changing the perceptions

Tactics: perception=fog

Preserve the fog Stir up new fogLift up the fog

•Pass credibility test

•Fail credibility test

•Hide information

•negotiate

(disagree to agree)

•Create complexity

•Shape opinions

Eg. : audits, random checks, bluff, hp printers, digicam, stock indices

SCOPE-Creating link in PART

Scope

Players Added value Rules Tactics

•Play judo

•Play sumo

•Length of contract

•Discounted value

•Threats

•Promises

CONCLUSION

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

Thank you!!!