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[G2] CO 7 Tactics (Games in Business (Played in fog, Tactics are needed to…

- - - - bet no matter you have a strong or weak hand
    - - keep its audit a secret
        
        Unpredictability is the key to effectiveness
  - - - Obscures the true price
        
        the Nintendo Entertainment System
        
        cheap price
        
        need to buy many game cartriges
        
        Microsoft Windows 95
        
        more memory
        
        bigger hard disk
        
        faster microprocessor
      - Hide price rises
        
        the shortage of hotel rooms on graduation weekend
        
        four-day packages
        
        300% increase in room rates
      - Hide how little they're charging
        
        sell at bargain price, but hide low price to avoid creating a perception of low quality
        
        Microsoft's Powerpoint presentation software
        
        included the program with Words and Excel
        
        alternatives: Harvard Graphics
      - Have a number of costs
        
        Making the Right Call
        
        DDI developed a chip goes inside the phone
        
        automatically routes each phone call via the lower-cost provider(DDI&NTT)
        
        High-Altitude Fog
        
        airline pricing has be out of control
        
        Value Pricing encourages furtive price cutting by competitors
  - - - True Blue?
        
        Intel versus IBM
- - - - New York Post raised the price and start losing subscribers
        
        NYP test marketing a low price, "show off"
        
        forces DN to higher the price to avoid a price war
      - Daily News stick to the old price
    - - Authors
        
        high up-front advance / low royalty rate
        
        high committment of the publisher
        
        low up- front advance / high royalty rate
        
        publisher shows a low level of committment
        
        author is very confident about the book
      - Investment banker
        
        high base salary/ low performance based salary
        
        risk averse or low confident person
        
        low base salary / high performance based salary
        
        self confident and money making
        
        lower risk for the bank if failure
    - - Offering Guarantees
        
        committing the organization to provide high-quality service
        
        alert of system brake-downs
        
        chance to apologize to customers
        
        convince people of the good quality
      - first-class service
        
        low guarantee
        
        no advantage
        
        first-class guarantee
        
        advantage over competitors
    - - introductory price or free trials
      - spend a lot of money for advertising
  - - - anyone who departs from this rule is penalized
        
        even if the tail become a burden
      - handicaps evolve precisely because they are handycaps
        
        proving strength to survive in spite of the handycap
- - - - E.T. vs Starman
        
        Having made a favorable impression, people try to preserve it by
        
        burying projects they've turned down
        
        following the herd
        
        creating reasons to fail
  - - - Mistakes
        
        Making threats explicit
        
        Trying to resolve differences of opinion between you and the other party
        
        Revealing the minimum you need.
      - Solutions
        
        Establish a settlement escrow to promote good-faith negotiating by both parties
        
        Bring in a mediator to help the other party understand the consequences of nonagreement
        
        Recognize what you and the other party do - and don't - have to agree on