G2 [CO] Chapter5 (Imitation (Unhealthy Imitation (Antidotes to Unhealthy…
G2 [CO] Chapter5
Business is War and Peace
win-win + win-win = win-win
Ex: AAdvantage, a win-win element in terms of pricing.
Antidotes to Unhealthy Imitation
Create a brand identity
spaghetti test strategy=antistarategy strategy
lock up both suppliers' total annual production
buy more time to build brand
Build volume to move down the learning curve.
Collect customer feedback to customize your product - competitors can´t copy you because they don´t have the information
provides a hightech clipping service
improve the selection of stories
watching what clients read
update its user profile accordingly
better service than others
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Compete aggressively for volume so that competitors can´t follow you down the learning curve.
Business is War
win-lose + lose-win = lose-lose
:explode: The thick is to run faster and faster
a strategy of jumping to the next-generation chip
less apparent unhealthy imitation
cut the cost of supplying but ignore its niche productoin
Loss of computing Power
IBM pursuing the outsourcing and open-architecture policies together
the alternatives increase
added value curtailed
The Virtuous Cycle
more customer will buy
a larger base
a lower cost
more good games
a selection of superb game
prevent rampant copying
five titles a year
emphasize quality over quantity
an exclusivity clause
prohibited licensees form releasing the same title for other video game systems for 2 years
avoid letting the supply over demand
strictly control how many games are produced
games being more desirable to customers
boost the demand
shortage made headlines
help retailers move slower-selling
Nintendo's power ( monthly magazine )
create high added value for itself and a low added value for
cartridges constantly in shortage
Nintendo in this business itself
chip is a commodity
The counterpart strategy is underdemanding a source
limit its demand for players
limit the supply of teams
hold back the supply
manage the demand
Use ADs to shape the game
Diamonds Are Forever :red_flag:
limit the competition of secondhand market
Engineering Added Value
Raise the amount customers are willing to pay by more than the incremental cost
Reduce cost without reducing willingness to pay as much
Taco Bell , Marks & Spencer
Lower costs in a way that helps you deliver a better products
Deliver a better product in a way that helps you lower costs
Added Value of a Relationship
Helped other businesses also to create loyalty
Car rental agencies
Every major Airline has a Frequent-Flyer PRogram
Who wins and Who Loses?
Business traveler wins - boss pays
Boss wins - Tax free compensation for traveling
Saying Thank You
Dont say thank you too quickly, or too slowly.
5: Say you are going to say thank you.
§. Say thank you in a way that builds your business.
Recognise that you may have to compete for loyalty.
Allow your competitors to have loyal customers, too.
Don´t forget to say thank you even if you have a monopoly.
Say thank you to your suppliers as well to your customers
Say thank you in kind, not cash
Save the best thank-you for your best customers.