U NDERSTANDING C O - OPETITION USING THE PARTS STRATEGY

P RESENTATION E NDEAVOR :

Concept of co-opetition Concept of Value Net Introduction to Parts strategy Using Players Strategy

Using Added Value Strategy

Using Rules Strategy Using Tactics Using Scope

C O -O PETITION

Business is a game. Played with an win-lose agenda. Market is a battle ground

But the fact is most businesses succeed only if others also succeed.
Business is a real game; if only one player can win after the others fail; all those who fail would not like to participate in future to play. Therefore, in business its worthwhile to cooperate and compete simultaneously with an intention to not snatch others share alone but to expand the overall market pie to be shared by all the players.

VALUE
Customers

NET

Competitors/supplementors

Complementors

Company

Suppliers

PARTS S TRATEGY

PARTS Strategy as tool to CHANGE THE GAME! The BIG PICTURE to be analyzed by any company:

Understanding the customers, suppliers , competition and complementors: Players

Understanding the value they offer: Added Value

To play the game of business understand its rules: Rules

Game is played with: Tactics Every game has a scope: Scope(linking PART)

P P LAYERS
3 Options for using the Players Strategy

Become one Include/invite one or more

Change the Players

B ECOMING
Strong Enter with a bang Moderate Get paid to play

A PLAYER ..
Weak Get paid to play
Dont hesitate to challenge the monopoly

Enter the bidding game Challenge the monopoly E.g.: Holland sweetener v/s NutraSweet How to get paid Ask for bidding contributions

Reasons to substantiate the payment to play Time

Request guarantees Ask for information access Bid for more than one business
Ask the price to capture the business

Money Fear of Retaliation Customer & competition pressure

Your move may or may not affect your competition but will surely affect yours.

B RINGING
Who???
Customers Suppliers

IN PLAYERS

How???
Pay them to play Educate the market Become your own customer/supplier/competitor/complementor Subsidize the entry and invite followers Form a buying coalition Patent your technology Create sources to encourage buying your technology

Complementors
competitors

C HANGING

PLAYERS

Step one: assess your own added value

High= Play as you wish

Low= Find ways to get play

A DDED
Added value Monopoly

VALUE

Competition

Monopoly money Virtuous circle Limiting supply

Competition: Trade off Trade on

Imitation: Healthy unhealthy

Relationship: Create loyalty Say thank you

Low competition
Changing added value

High competition

R ULES

Changing rules is complex as it includes the risk of:

Legal penalty

Exclusion from the market!

R ULES
Rules

CONT..

Contracts
Customers Suppliers

Mass market
Rebates

Government

MFC: Cust. Perspective Supplier perspective MCC: +ve , -ve

Take contracts
Pay contracts

Note: remember application of any strategy is open to all. Thus all players are open to change the game the way they wish to

TACTICS
-Changing the game by changing the perceptions Tactics: perception=fog Lift up the fog Pass credibility test Fail credibility test Preserve the fog Hide information negotiate Stir up new fog Create complexity Shape opinions

(disagree to agree)

Eg. : audits, random checks, bluff, hp printers, digicam, stock indices

S COPE
-Creating link in PART

Scope
Players Added value Play judo Play sumo Rules Length of contract Discounted value Tactics Threats Promises

C ONCLUSION

Business is the game where many winners could co exist and continue playing.

Always look at the larger picture

Any step taken should be backed by a long term future Competition is valuable Monopolies are easy targets

Thank you!!!