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Chapter 2 – Co-opetition, Thinking Complements, G4 (Thet Thet, Terry,…

- - - - COMPLEMENTORS
        
        A player is your complementor if customers value your product more when they have the other player's product than when they have your product alone
        
        Same industry
        
        Hot dog & mustard
        
        Different industry
        
        Phone companies and cable television companies (telecommunications and cable television)
        
        European banks sell insurance & European insurance companies sell tax-advantaged savings vehicles (banking and insurance)
        
        Way to identify complementors
        
        What else might my customers buy that would make my product more valuable to them?
      - COMPETITORS
        
        A player is your competitor if customers value your product less when they have the other player's product than when they have your product alone
        
        Same industry
        
        American Airlines & Delta Airlines
        
        Coca-Cola & Pepsi-Cola
        
        Different industry
        
        Microsoft and Citibank (software and banking)
        
        Ways to identify competitors
        
        What else might my customers buy that would make my product less valuable to them?
        
        How else might customers get their needs satisfied?
      - SUPPLIERS
        
        Recognizing symmetries
        
        Vertical dimension
        
        Customers and suppliers play symmetric roles
        
        They are equal partners in creating value.
        
        Horizontal dimension
        
        Complementors and competitors play mirror-image roles
        
        1.Top Half
        
        Deal with customers
        
        2.Bottom Half
        
        Deal with suppliers
        
        Two sides to the game with suppliers
        
        Other players can complement you or compete with you in attracting suppliers' resources.
        
        Example: Compq and Dell: They compete for the limited supply of Intel's latest chip.
        
        1 more item...
- - - - Customer
        
        Complementor
      - Supplier
      - Company
      - Government
    - - Jakell & Hyde
        
        Instinctive reflex thinking of human beings
        
        Fear
        
        Distrust
        
        Movie studios → Videocassett
        
        Traditional bookstore → Electronic publishing and the Internet
        
        Computer → Paper
        
        Citibanks → The ATM network of other bank
        
        Competition
        
        4 And even more....!?
        
        How to distinguish ?
        
        Look for complementary opportunities
        
        Making Markets
        
        New York diamond merchants along 47th Street
        
        Art galleries in SoHo
        
        Antiquarian bookstores in London
        
        Movie cinemas in Westwood, Los Angelos
        
        Car dealers located along a strip
        
        1 more item...
        
        The performing arts on and off Broadway, New York.
        
        1 more item...
        
        Toys R US ??????
      - Examples
        
        1.American & Delta Airlines
        
        2.Southern New England Telephone and Northeast Utilities
        
        The Museum of Modern Art vs The Guggenheim Museum
    - - • Customers
        
        Win-lose or win-win = peace & war
      - • Suppliers
      - • Complementors
      - • Competitors
- - - - Faculty,Staff,
        Administration,
        Publishers(books,journals,online services)
        
        The university's suppliers are primarily employees:faculty, staff, and administration.
    - - Other Colleges,
        Freelancing faculty,Private enterprise,
        Hospitals,Museums
        
        The universities have no shortage of competitors .For example,Admissions offices compete with one another for students.
        
        On the supply side, universities compete with one another for faculty and administrators.
    - - Other colleges,K-12 education,
        Junior school
        Computers,Housing,Airlines,
        Hotels,Cultural activites,
        Local employers,Copy shops
        
        For example, the undergraduate schools in one university and graduate schools in another university complement one another.
    - - Students,Parents,
        Federal government,State government, Companies,Donors
        
        1.Students
        
        Faculty should listen carefully when students' express satisfaction or dissatisfaction with the service they get.
        
        2.Parents
        
        They pay for their children's education.
        
        3.Companies
        
        They pay to send employees there.
        
        4.Donors
        
        They are very important for the university because a university fund-raising campaign starts with a list of priorities --a "mission'' and tries to persuade donors to fund them.
- - - - It is hard for customers to borrow money so as to buy a new car
        
        General Motors created General Motors Acceptance Corporation in 1919
        
        Ford Motors formed Ford Motor Credit in 1959
        
        Earned more money making loans than making cars
  - - - General Motors, Hudson, Packard, and Willys-Overland, together with Goodyear tires and Prest-O-Lite head-lights
    - - The federal government committed its first dollars to building roads in 1916
        
        The first five transcontinental highways had been completed in 1922
  - - - Sells Michelin guidebooks
        
        Point out the longer scenic routes
        
        Encourages travelers to keep moving and wear down tires
        
        Sell more tires and also a profitable business
        
        Dominates the guidebook market in France and is making inroads in the rest of Europe
  - - - La Centrale des Publisher
      - Paris weekly specializing in advertisements for used cars
        
        Prenegotiated very favorable rates for their readers
        
        A prominent listing in the magazine
        
        Use of the La Centrale brand name
      - France's Minitel online service
        
        Average transaction prices and the average time on the market for each make, model, and year
- - - - Lost out to suburban malls
  - - - Exited the U.S. market
        
        The problem of missing complements is multiplied a thousand times
        
        The third world
        
        Former communist countries
        
        Conclusion
        
        :check: Finding ways to make the pie bigger
        
        :star: Expand the pie by developing new complements
        
        :star: Make existing complements more affordable
        
        :green_cross: Fighting with competitors over a fixed pie
- - - - Looking for applications requiring massive processing capabilities
        
        ProShare
        
        Phone companies
        
        Subsidizing ProShare to encourage people to buy ISDN lines
        
        Increase the demand for data transmission
        
        Intel increase the demand for processing capability
        
        Compaq
        
        Include ProShare in its business PCs
        
        Allows its business PCs to stand out from the competition