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G2_[CO] Chapter 4 _Players (Getting paid to play (Ask for better access to…
G2_[CO] Chapter 4 _Players
Heisenberg principle
You enter the game
You change the game
Bringing in other players
Bringing in Customers
The most obvious benefit is more customers lead to more sales.
Bringing in new customers lowers the added values of all the existing ones.
Puting the seller in the stronger bargaining position
Ways
Educate the market
Pay them to play
Ex: America Online
Subsidize some customer
Ex:Newspaper and magazines
Do it yourself:Become your own customer
Ex:Boeing
Bringing in Suppliers
Ways
Pay them to pay
Form a buying coalition to become a larger buyers
Can share the cost
Do it yourself: Become your own suppliers
More suppliers put the buyer in a stronger bargaining position
Bringing in Complementors
Ways
Form a buying coalition on behalf of your customers
Pay complementors to play
Do it yourself: Become you own completmentor
Raising your added value
Bringing in Competitors
Ways
Create second sources to encourage buyers to adopt your technology
Ex: Intel
License your technology both to make money and avoid complacense
DIY:create internal competition across teams
Ex: Procter&Gamble
Getting paid to play
Ask for better access to information
Ask to deal with someone who will appreciate your participation
Ask for last-look provision
Ask to bid on other pieces of business
Ask for guaranteed sales contract
Ask the customer to quote a price
Ask for contributions
Cash is ok too
Hidden cost of playing
The incumbent can rataliate
Win or lose you lower the price
When you win the business the price is often so low you will lose money
Set up a bad precedent - benchmarkt for new customers
Unlikley to succeed ? - there are better uses of your time
Competitors will also use the low price
I dosen´t help to give your customers´ competitors a better cost position
Don´t destroy your competitors´ glass houses - they will go after your accounts