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[CDPS] G2 - (CO) Chapter 2 - Co-opetition Member: Sunny / Cindy / M.J /…
[CDPS] G2 - (CO) Chapter 2 - Co-opetition
Member: Sunny / Cindy / M.J / Phoebe / Ian
(1.) Complements
Definition
If customers value your product more when they have the other player's product than they have your product alone
Reciprocal relationship
Example
Successful case
Intel -ProShare
Increase the demand for processing capability
Phone companies
Data transmission
Compaq
Stand out at PC industry
Win-win
Failing case
Automobile industry
Alfa Romeo & Fiat
Difficult to find spare parts & qualified mechanics
Sony Betamax videocassette
Few market
Shopping area
Parking problem
Customers prefer suburban mall than downtown shopping center
Making market
Make existing complements more affordable
Develop new complements
Make the pie bigger than compete for a fixed pie
Exploit bunching effect
summary
The first industry & complementary industries all need each other
(3.) Value Net
Symmetries
Symmetric roles
Customers
Suppliers
Mirror-image role
Competitors
Complementors
(4.) Value Net
Competitors
Complementors
Suppliers
Complementors
Provide resources to you and others simultaneously
Cost sharing(R&D, Up-front investment)
Enhance bargaining power
Competitors
Provide resources either to you or others
Compete for limited resources
Customers
Complementors
Have other product simultaneously :check:
Have your product alone :green_cross:
Competitors
Who are your competitors?
Put yourself in the customers' shoes
Citi v.s. Microsoft
:check:Have your product alone
:green_cross:Have other product simultaneously
Multi-role
Corporate
Cost sharing
Making market
Resource sharing
Compete
Customers
Resources
A player you can't avoid
Government
Supplier
Selling rights(Oil, Mineral)
Competitor
Raising capital
Customer
Government commissions
Complementor
Provide infrastructure/civil order
(2.) Players
definitions
(5.) Friend or Foe？
Complementors
Enter the game
Pie grows
Win-Win
During the game
Scramble for main beneficial
Their pain is your gain
Compag's and Dell's price war
Microsoft wins game
Their gain is your pain
NTT charges handsomely for local calls
On-line services haven't taken off in Japan
Competiters
Win-win opportunities
Work together with your competiters
Java technology
Loyalty program
It's survival of the fittest
Win-lose become lose-lose
Cutting price in an attempt to steal market share
Jekyll and Hyde
See new player as a competitive threat
Many players complement you as well as compete with you
:silhouette:Complementors
if it's MORE attractive
:silhouette:Competitors
LESS attractive
:silhouette:
Suppliers
provide resources to you
:silhouette:
Customers
value your product
Less
More
the game of Business