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SCD G2 [CO] Chapter 3 – Game Theory, G2 (Wai wai, Pingyen, Jocelyn, Ysa,…
SCD G2 [CO] Chapter 3 – Game Theory
Added value
Value added to your business
the size of the pie (When you are in the game)- the size of the pie (When you are out of the game)
Example from Card game
You need to know who have power in Business
Example - Home Alone (1) and Home Alone (2)
Added Value help to see the strength of your position
Common Error
Quickly Agree (Lack confident to negotiate)
Need to see other will lose without you
Think they are nothing without Adam
Confuse your individual add
Example from Card Game
See only half equation
What is your add Value
How other player affected in the game is one player left the game
Example from George
Boundaries
The Scope of the game
Industrial Boundaries
Mental boundaries
Artificial and Fictionalizing
Epson's entry
Mistakes
Failed to think through the link
Misunderstood the scope of the printer game
Cascade effect
A move in one game can effect whole fortunes in other games
Rationality and irrationality
Be rational
never arise pride, fairness, jealousy, spite
never arise spite, vengefulness, altruism, charity
seldom zero-sum in business
What Rationality Is — and Isn’t
seeing things differently
difference in perceptions
motivated by many things
pride, fairness, jealousy, spite,
vengefulness, altruism, and charity
remembering to look at a game from multiple perspectives
Allocentrism
put yourself in the other players' shoes
egocentric
allocentric
like playing chess
impossible to pretend that you don't know what you know
assit
role-play
all-centrism isn't always works
Crazy Driver
wounded pride
The elements of a game
To apply the concepts creatively to real world situations
To Make sure None of PARTS is neglected
Added Values
Each player's contribution to the game
Who has power ?
Who will get a big payoffs
Players
Customers
Suppliers
Competitors
Complementors
Scope
To Understand the limits of each game
Consider and Pinpoint the links
Rules
The way the game is played
No certain rule
We take granted to the most important rules
Tactics
Importance of perceptions
Devices to shape perceptions
Rules
Contracts with Suppliers
Take-or-Pay Contracts
Mass-Market Rules
Government Rules
Changing the Rules
You can change rules. But remember ether people can change the rules, too. Don't assume your rules will rule.
Contracts with Customers
Most Favored Customer Clauses (MFC)
The Seller's perspectives
Makes you tougher negotiator +
Reduce customers' incentive to bargain +
Makes it easier for rival to target one of your customers. -
Makes it harder for you to target one of your rival's customers. -
The Customer's Perspective
Allows benefit from any better deal subsequently offered to other customers. +
Ensures that you aren't at a cost disadvantage relative to rivals +
Eliminates the risk of looking bad if other customers strike better deals.
4.When others have MFCs, it's harder for you to get a ''special'' deal -
Meet-the-Competition Clauses
Reduces the incentive for competitors to bid
Takes the guesswork out of bidding- you know what bid you have to beat
Let's decide whether to keep the customer
Allows competitors to bid without having to deliver. -
G2
Wai wai
Pingyen
Jocelyn
Ysa
Kimmy
Mulan
Christine