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[CO] Chapter 8 – Scope :pen:Members: Sunny/Cindy/MJ/Phoebe/Ian (Link…

- - - - Sonic the Hedgehog became successful because the Sega company gained an idea of 16-bit game based on its rival company Nintendo 8-bit franchise
    - - Sega---"Service Games" (in short)
        
        Founded in Tokyo in 1951 by 2 ex-servicemen
        to import arcade games & jukeboxes to U.S military bases in Japan
      - Another merger came in 1965 & became Sega Enterprises
      - Gulf+ Western conglomerate noticed Sega's - Periscope ( a torpedo game) ----success
      - Home video games- an 8-bit system(the SG-1000) - no success
    - - introduced 16-bit Mega Drive home video game system
      - It's advantages outweigh Nintendo's 8-bit systems
      - Sega's 16-bit system entered US Market in Sep 1989.
      - Tom Kalinske (Matchbox)
        
        He reduced the Sega Genesis price by $50 and bundled the best Sonic Hedgehog software
        
        In June 1991, the Genesis & Sonic's sale increased for $150; "Genesis does what Nintendon't"
    - - Despite it's 16-bit video invention, Nintendo does not bring it into market fearing of certain risks
      - Only introduced 16-bit Super Famicom system in 1990
      - Sales went off within 5 months---"the name of the game is the games.
      - In Sep 1991, Nintendo introduced Super NES
    - - Competiton between price cuts, free software & longer list of game titles occured
      - Not introducing a 16-bit battle is also good for Nintendo because there occured competition and lower price with its entrance into the game
      - Nintendo let Sega have the 16-bit market all to itself to extend its 8-bit life, giving the link between 8-bit and 16-bit games
      - Criticism happened because of Nintendo's delay of 16-bit system
      - Technology change gives challengers opportunitiesto overturn incumbents
      - A challenger may still use the judo approach to at least neutralize the inumbent's advantage
    - - Wait -and -see stance
        
        The majors waited and watched Taylor's entry of soft soap liquid- soap success or failure
      - Even after success of Taylor's liquid soap, the majors were still fear of using their existing brand for their new liquid-soap product and used new independent names
      - These situations give Taylor's soft-soap maintained its lead position (trick-having the moderate level of uncertainty makes incumbent hold back, play cautiously and keep the games apart)
  - - - Updated Textbooks (Publishers)
      - To find way to get the used books off the market, servering thr link between last year's game & this year's game
      - Applicable in different fields
      - Keep buying---Keep up
    - - Nintendo's 16 bit video games
        (obsolescence strategy)
      - Backward compatibility
        (a strong selling point)
        
        1.Save new hardware costs
        
        All 8 -bit games obsolete and make its customers stock up on new software
        
        Nintendo's cleverness is building a customer base from its competitor
- - - - Create linkage to another market(game)
      - Force cable operators accept free retransmission consent
    - - Cut the link between 2 games
      - Make TCI agree to pay but pay as a scholarship donation
  - - - CEO
        
        Renewal in July only make the client have sufficient time to find new supplier
      - CFO
        
        Want to link the discount to contract extension
- - - - annual competitions for 1-year :newspaper:
        
        play lots of little games
        
        :silhouettes: may NOT compete that aggressively
        
        prize is NOT big enough :warning:
      - infrequent competitions for long term :newspaper:
        
        once & for all conpetition
        
        :silhouettes: :a big enough prize
- - - - Added-value
        
        Co-opetition
        
        Intel
        
        Ford :racing_car:
      - Rules
        
        Constraints
        
        MFC
        
        MCC
      - Players
        
        Your players join another game :silhouettes:
      - Tactics
        
        Someone perceives them to be linked
        
        NutraSweet v.s. Holland Sweetener
    - - Useful :smiley:
      - Zoom out
      - Two strategies in this chapter
        
        Link
        
        Sever :scissors:
- - - - buy the F & get a coupon for $5 off Free Willy
        
        = buy both get $5 off
        
        Hit: :arrow_heading_down: $5 /per person
        
        Benefit: include the other market segment :moneybag: :money_mouth_face: