Chapter 2: Co-opetition

1. Chapter 2: Co-opetition Presented by Molly McVicker and Jacob Perry

2. Who are the players in business? • Customers • Suppliers • Competitors • *Complementors

3. Complementors • Any product or service that makes another more attractive • i.e. hot dogs and mustard, cars and loans, T.V. and DVD player • Always reciprocal • Making the pie bigger vs. fighting • Overlooked, but very important

4. Failed Compliments • Developing countries • Foreign cars • Betamax • Downtown shopping

5. The Value Net • It’s easy to focus on one part of business (i.e. The customer is always right) • Shows the symmetries between each part and how they must work together

6. A Universities Value Net • Customers • Students, parents, government, donors, companies • Suppliers • Faculty, staff, administrators, publishers • Competitors • Other colleges, free lancing faculty, private enterprises, hospitals, museums • Complementors • Other colleges, K-12, computers, housing, airlines, hotels, cultural activates. Local employers, copy shops

7. Players can play multiple roles • Can be a competitor as well as a complementor • i.e. Museums in New York, Amazon.com and bookstores, America and Delta airlines • The Value Net enables you to sort through this tangle

8. Friend or Foe • There is a blurred line between who is a friend and who is a foe • Airlines compete for passengers, landing slots, and gates • At the same time they complement each other when commissioning Being to build a new plane • Which complementor is going to get a larger piece of the pie? Microsoft benefits when two computer companies have a price war.

9. Friend and Foe • Creating a win-win situation by working with a competitor to develop complementors and sometimes allowing win-lose situations • Just don’t allow a lose-win recipe by being nice and expecting the competitor to reciprocate • War and peace!

10. Sources • Co-opetition, Adam Brandenburger and Barry J. Nalebuff