Please enable JavaScript.
Coggle requires JavaScript to display documents.
BSG-2-Growth through entry (proper noun (Prisoner's Dilemma囚徒困境, Tit…
BSG-2-Growth through entry
Post-entry strategies
Cooperative
Structure the game such that firms have shared incentives
Establish long-term relationships
Prisoner's Dilemma
Tit for tat
Restructuring
capitalize on these transition points to take advantage of the new competitive environment.
Consolidate market power through mergers and acquisition
Introduce new products or services
Diversification
Enter or create new markets
Fighting
Price cutting
apply to.....
Firm have a
Cost advantage
It's a
Winner-take-all market
Firm is a
niche player
Intensive advertising
Informative
advertising
Early stage of product
when there are high network externalities, it will raise your market share
proper noun
Prisoner's Dilemma囚徒困境
Tit for tat以牙還牙策略
stagnant:停滯
trajectory:軌道
Game theory
Understand Rivalry
EX: Toyota - Repeated simultaneous game
An entry game
Decide two firms whether to enter new market
Both enter may result in worst outcome
Investment game
Showed by Decision tree
Analyzing games
Mapping games
Considerations
Challenges
Understand Cooperation
Prisoner's dilemma
Take two bank robbers for example
Cheap talk and costly action
Signaling
Influence competitors
Commitment
Look forward and reason backward
identifying potential rivals
be aware of outside firm in stagnant or decline industry
relevant capabilities
underutilized resources
overlap value chain
economies of scale
same vertical industry chain
bargaining power
economies of coordination
be aware of strategic trajectories
Entry & Rivalry
Rivalry
effect the competitive position
drive down margin
eliminate competitors
tools
competitors analysis
game theory
five forces analysis
Entry
offering new products or services
new market
Pre-Entry Strategies
Deterrence Strategy
Strategy to reduce incentives of entry
Raise factor cost
Limit pricing
Strategy to increase cost and risk of entry
Reduce quality of information of cost and demand
Make retaliation more credible and accommodation less credible
Erect structural barriers(Licensing, Regulations)
Accommodation Strategy
Commit position that soften competition after entry(Differentiated Products)
Make commitment to compete aggressively
Organize to facilitate future coordinations