Strategy management
strategy
strategy
Fichier Détails
| Cartes-fiches | 59 |
|---|---|
| Langue | Deutsch |
| Catégorie | Gestion d'entreprise |
| Niveau | Université |
| Crée / Actualisé | 15.12.2023 / 18.12.2023 |
| Lien de web |
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The five elements of collective action (creation of shared value, lecture 6)
Idea: Societal arise from a complex combination of actions and omissions by players in all sectors—can hence only be solved by the coordinated efforts of those players: businesses, government agencies, charitable organizations, and members of affected populations.
Alternative perspective: businesses are limited to achieve growth or resilience due to societal problems
i.e. require changes to how the “system” works
Five elements are needed:
1) a common agenda
2) a shared measurement system
3) mutually reinforcing activities
4) constant communication
5) dedicated “backbone” support from one or more independent organizations.
Critiques against shared value creation
CSV is unoriginal
CSV ignores the tensions between social and economic goals
CSV is based on a shallow conception of the corporation's role in society
Why game theory / coopetition in strategic network?
In Strategic Networks and Ecosystems, businesses (and organizations) have to decide with whom to cooperate and/or with whom to compete in dynamic coalitions.
Often, both occurs simultaneously, this is captured in the concept of “coopetition.
Coopetition - combines the words cooperation and competition.
Coopetition is a business strategy that uses insights gained from game theory to understand when it is better for competitors to work together
sharing the cake; allocations (efficiency, rational)
An allocation (x1 ; x2 ; ... ; xn ) is called
a) individually rational if xi v(i) for all players i b) efficient if x1 + x2 + ... + xn = v(N)
Both demands seem plausible:
Individual rationality simply means that when dividing the pie, each player must get at least as much as if they were operating on their own (without interaction with others).
Efficiency requires that the whole cake v(N) is actually distributed.
Game theory
Game theory is a mathematical theory in which decision-making situations are modelled in which several participants interact with each other. Among other things, it attempts to derive rational decision-making behaviour in social conflict situations.
Zero-sum games
vs.
non-zero-sum games
A game in the sense of game theory is a decision-making situation with several participants who influence each other with their decisions.
Purely competitive games:
One player's gain is the loss of the other(s); the sum of all payouts is zero (or at least constant).
Zero-sum games
Economic games (even in competitive markets!) are often different - due to growing market volumes
- due to additional value creation through cooperations
Non-zero-sum games
In non-zero-sum games, it is very conceivable that "win-win" strategies exist (several/all players benefit at the same time)!
game theory and network management
Game theory analyses the interplay between competition and cooperation in a network of actors.
It models strategic situations in a given business network as a 'game' and helps companies:
assess their own position in comparison to other network actors,
anticipate reactions to an actor's actions,
understand how the other players see the game
to take advantage of options to change the game to one's own advantage.
competitor and complementor definition
A player is your competitor if his participation in the network causes your own participation to be valued lower by the other players in the network than if you were playing alone.
A player is your complementor if his participation in the network results in your own participation being valued more highly by the other players in the network than if you were playing alone.
added value
Play value with your company minus
Play value without your company
Goals and overarching principle of Coopetition-based business modelling
− Overarching Principle:
A coopetition-based business model should be designed to maximise shared value creation through theuse of complementary resources and minimise conflicts over value sharing or appropriation.
− Four goals that are not mutually exclusive but can be combined:
1) Increase the size of the existing market
2) Development of new markets
3) Efficient use of resources
4) Improvement of the competitive position of the company/network
Platform mediated business models
Platform-mediated business models encompass users whose interactions are subject to network effects (positive or negative), along with intermediaries who provide a platform that facilitates users’ interactions (Eisenmann 2007).
Platform-mediated business models can encompass one-sided markets (one user group), two-sided markets or multi- sided markets.
Positive same-side effects:
drawing users to one side attracts even more users to that side (e.g. more online X-Box players) Action: incentives to get new users
Negative same-side effects:
registration of a new user has a negative effect on other users (e.g. each new seller has a negative effect because sellers prefer fewer rivals - STUcard and its partner companies)
Action: consider exclusivity in each transaction category
Positive cross-side effects:
increasing the number of buyers makes it more attractive to sellers
Action: search for marquee buyer (80/20 buyers)
Negative cross-side effects:
increasing the number of players on one side makes it less attractive for players on the other side (e.g.too many advertising makes a TV programme/channel less attractive for viewers)
Action: consider restricting the number of players on one side (e.g. through pricing)
Features of platform-mediated business models
Platform-mediated business models have features which differ from traditional business models in product and/or service markets and contradict microeconomic principles:
Platform operators can market their products/services below costs – if necessary, they can give them away for free.
A market is often covered by only one (or few) platforms.
Platform-mediated business models mostly have increasing, not decreasing demand-sided economies of scale.
Chicken / egg problem or penguin effect regarding platforms?
“Network effects": the effect, that the benefits for participants in a network increases with the number of participants (increasing marginal returns).
The platform’s value to any given user largely depends on the number of users on the network’s other side. Value grows as the platform matches demand from both sides.
At the same time, the platform is unattractive if it has only a limited number of participants. Therefore it is important to avoid the „penguin effect“ (no penguin wants to jump first)
how to solve the chicken and egg problem?
First mover: make sure you are the first platform!
Signalling strategy: Signal commitment to the relevant market side(s) (e.g. Sony‘s pricing announcement to launch a new Playstation)
Subsidise one market side: Typically one side (subsidy) – when attracted in large volume – is highly valued by the other (money) side
Ensure transaction volume not necessarily number of members by attracting key player (marquee user)
Offering equity in exchange of platform participation
Why are some platforms more viable than others?
Minimum viable market share (low or high); driven by demand for differentiated features and fix cost Customer captivity
Value of user data
Risk of envelopment due to overlapping user bases
STIMULI
Stimuli – Pull factors for platform participation
- Consolidating supply and/or demand
- Creating market transparency
- Global reach (supply and/or demand side)
- Reducing search costs
- Reducing transaction costs
- Reducing product development costs
