Barry J. Nalebuff
Now available in paperback, with an all new Reader's guide, The New York Times and Business Week bestseller Co-opetition revolutionized the game of business. With over 40,000 copies sold and now in its 9th printing, Co-opetition is a business strategy that goes beyond the old rules of competition and cooperation to combine the advantages of both. Co-opetition is a pioneering, high profit means of leveraging business relationships.
Intel, Nintendo, American Express, NutraSweet, American Airlines, and dozens of other companies have been using the strategies of co-opetition to change the game of business to their benefit. Formulating strategies based on game theory, authors Brandenburger and Nalebuff created a book that's insightful and instructive for managers eager to move their companies into a new mind set.
he’d left on the table. The studio’s lawyer reported back that he’d saved the studio a half million, almost enough to justify his salary in one swoop. So everyone was happy? Not quite. The studio head was happy that the movie was back on track. But when he was told how little the writer would be getting, he was horrified. He knew that once the star discovered what the studio was paying for a replacement director, the star would protest that he was being surrounded by second-rate talent. The
good one. Emphasize that in switching suppliers, he’d be giving up a proven relationship for a leap into the dark. Lower price or not, he could well end up regretting the move. If the customer values the relationship, you should be able to keep the business without meeting the new price. You’ll probably need to make some price concession, but you won’t need to go the whole way. If this doesn’t work, that doesn’t mean you should now go ahead and match price. It might be better to let the customer
1. Allows competitors to bid without having to deliver. There’s a buyer’s counterpart to an MCC. A buyer would like a guarantee that the seller will sell to him provided he matches the highest price anyone else offers the seller. Used this way, the rule is typically called a right of first refusal. But conceptually, it’s exactly the same as an MCC. Both entitle the person to a last look. That’s the key. And, given what you’ve just seen with MCCs, you won’t be surprised to learn that a right of
they won’t lose an essential player without having the chance to match any competing bid. Of course, anticipating that the current owner will likely match any bid, rival teams have less incentive to bid for a player in the first place.11 The effect is to reduce the competition for athletes below what it would otherwise be. In principle, games with suppliers should be exactly parallel to games with customers. But, in practice, the rules in these games are sometimes different.
three of them did manage to get a consolation prize. Fox played its hand early and did the best. In June 1993 TCI and Fox announced their deal: Fox gave retransmission consent, while TCI agreed to pay Fox 25 cents per subscriber for a new, undefined cable channel. ABC and then NBC got similar, though less generous, deals from the cable companies. Each was paid for creating a new cable channel.29 CBS held out the longest—and walked away with absolutely nothing, except perhaps a black eye: Having