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sesión 03 AD5015
- 1. Lecture 03 Developing strategiesunder an uncertain environment
- 2. Dr. Jorge RamírezMedina Readings control
- 3. Dr. Jorge RamírezMedina Should a firm seek to be the first to introduce a new technology to a market, or is it wiser to wait? “There is a big difference between being first to market and first to the mass market” Fast Second. Constantinos Markides and Paul Geroski
- 4. Dr. Jorge RamírezMedina Leaders and followers Required to innovate “A key characteristic of a disruptive technology is that it changes the basis of competition.” … offer inferior performance, at least initially, By focusing on innovating with a technology that its customers want, the firm may fail to invest in a disruptive technology that may eventually dominate its market. “Blindly following the maxim that good managers should keep close to their customers can sometimes be a fatal mistake.”
- 5. Dr. Jorge RamírezMedina The innovator’s dilemma
- 6. Dr. Jorge RamírezMedina The pastas war Toothpastes war They equitably share market (total sales of 10 MMP) Each company plans to use a disruptive technology (technology cost 2.5MMP) • No effect on the total market size, or total sales. • Increasing 80% the company market size only if the competitor does not use its disruptive technology strategy Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 7. Dr. Jorge RamírezMedina Game scenario Players • Sensodyne, Colgate Actions • Use disruptive technology • Do not use disruptive technology Rules • Simultaneous decision making Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 8. Dr. Jorge RamírezMedina Game scenario Reward (Payment) • both do not use disruptive technology, then both win 5 MMP • both use disruptive technology, then both win 5MMP-2.5MMP • Only one of the players uses disruptive technology • First mover wins 8MMP–2.5MMP • Laggard wins 2MMP Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 9. Dr. Jorge RamírezMedina Matrix ColgateSensodyne Disruptive technology No Disruptive technology Disruptive technology 2.5/2.5 5.5/2 No Disruptive technology 2/5.5 5/5 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 10. Dr. Jorge RamírezMedina The other Pasta War Pizzas War Prices may be • High $ 120 • Average $ 100 • low $ 50 1000 clients total Maket • 300 only buy at Pizza Hut • 300 only buy at Domino's • 400 buy at cheaper or choose whatever of the two companies , if price is the same Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 11. Dr. Jorge RamírezMedina Escenario del juego Players –PizzaHut, Domino’s Actions –High prices, –Average prices –Low prices Rules –Simultaneous decision making Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 12. Dr. Jorge RamírezMedina Game scenario Reward (Payment) Case of Pizza Hut average price and Dominos Pizza high Price Then Pizza Hut sells 300 loyal customers, plus 400 who go for the lowest price (300 + 400) * 100 = $ 70,000. Domino's Sells 300 loyal customers. (300) * 120 = $ 36.000 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 13. Dr. Jorge RamírezMedina Matrix Pizza Hut Domino’s High Average Low High 60/60 36/70 36/35 Average 70/36 50/50 30/35 Low 35/36 35/30 25/25 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 14. Dr. Jorge RamírezMedina Dominant strategy 1. A strategy that always works better than any other strategy. 2. Becouse of that, this is always the of a rational player’s first option. 3. A rational opponent plays to select the dominant strategy. Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 15. Dr. Jorge RamírezMedina Dominant strategy 1. A strategy that always works better than any other strategy. 2. Because of that, this is always the of a rational player’s first option. 3. A rational opponent plays to select the dominant strategy. Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 16. Dr. Jorge RamírezMedina Dominated strategy 1. A strategy that never works better than any other strategy. 2. For this reason there is the option of a rational player. 3. A rational opponent never plays to select the dominated strategy. Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 17. Dr. Jorge RamírezMedina Solving Pizza Hut Domino’s High Average Low High 60/60 36/70 36/35 Average 70/36 50/50 30/35 Low 35/36 35/30 25/25 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 18. Dr. Jorge RamírezMedina Solving Pizza Hut Domino’s High Average Low High 60/60 36/70 36/35 Average 70/36 50/50 30/35 Low 35/36 35/30 25/25 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 19. Dr. Jorge RamírezMedina Solving Identify dominant Pizza Hut Domino’s High Average Low High 60/60 36/70 36/35 Average 70/36 50/50 30/35 Low 35/36 35/30 25/25 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU) No Dominat Strategy
- 20. Dr. Jorge RamírezMedina Solving Identify dominated Pizza Hut Domino’s High Average Low High 60/60 36/70 36/35 Average 70/36 50/50 30/35 Low 35/36 35/30 25/25 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU) No Dominat Strategy
- 21. Dr. Jorge RamírezMedina Back to the other war ColgateSensodyne Disruptive technology No Disruptive technology Disruptive technology 2.5/2.5 5.5/2 No Disruptive technology 2/5.5 5/5 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU) Dominat Strategy
- 22. Dr. Jorge RamírezMedina Back to the other war ColgateSensodyne Disruptive technology No Disruptive technology Disruptive technology 2.5/2.5 5.5/2 No Disruptive technology 2/5.5 5/5 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU) Dominat Strategy
- 23. Dr. Jorge RamírezMedina Nash Equilibrium ColgateSensodyne Disruptive technology No Disruptive technology Disruptive technology 2.5/2.5 5.5/2 No Disruptive technology 2/5.5 5/5 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU)
- 24. Dr. Jorge RamírezMedina Nash Equilibrium Colgate Sensodyne Disruptive technology No Disruptive technology Disruptive technology 2.5/2.5 5.5/2 No Disruptive technology 2/5.5 5/5 Tomado del curso Competitive Strategy del professorTobiasKretschmer. Ludwig-Maximilians-UniversitätMünchen(LMU) Combination of Strategies No player may deviate from current strategy in order to improve payment
- 25. Dr. Jorge RamírezMedina Why would Google, Apple, or IBM ever buy a software company? Give some examples of acquisitions of software companies carried out by these companies and discussed in class
- 26. Dr. Jorge RamírezMedina Gans and Stern Matrix
- 27. Dr. Jorge RamírezMedina Fin de sesión
Editor's Notes
- #4 the firm that captures most of the value from a new technology is often not the firm that introduces it to the market. Although the Apple iPhone currently captures the majority of the handset industry’s profit, for example, it was not the first smartphone—it was preceded by the BlackBerry, which was preceded in Japan by smartphones from NTT DoCoMo. Or Cisco John Chambers The early leaders in the US personal computer market included the Altair 8800, followed closely by the Commodore PET, the Apple II, and the Tandy TRS-80 from Radio Shack, yet all of these were superseded by the IBM PC design, which came to dominate the market.
- #5 Geoffrey Moore ; but what happens if everyone makes calls using services like Skype? Should phone companies cannibalize their currently profitable business by offering VoIP? Or should they ignore it and risk seeing their profits disappear? Such new technologies are disruptive because innovators can use them to enter underserved markets, gain experience, and move up the technology performance curve. Christensen argues that by the time the disruptive technology meets the needs of the majority of customers, the innovator has an unassailable technical lead and can displace the incumbent. Click on Video 1 to see how innovators can use disruptive technologies to challenge incumbent Firms. ***************************** the innovator’s dilemma Richard Foster argued that innovators using these new technologies have an attacker’s advantage because of the incumbents’ difficulty in diverting resources away from profitable and high-margin current technologies to lowermargin and lower-performance new technologies. The problem is compounded by the fact that the threat may be difficult to detect—innovators using disruptive technologies often target a niche market and so do not substantially affect the financial performance of the incumbent.
- #6 Caso Axtel-Alestra: le llegó la hora a Tomás Milmo http://www.elfinanciero.com.mx/blogs/historias-de-negoceos/axtel-alestra-le-llego-la-hora-a-tomas-milmo.html
- #10 La ganancia será mayor si ambos no hacen campaña (5MdP) Pero ambos tienen un incentivo( 5.5MdP) para realizar la campaña de manera individual No importando lo que haga el competidor Situación conocida como el dilema del prisionero
- #24 Lagananciaserámayorsiambosnohacencampaña(5MdP) 2.Peroambostienenunincentivo(5.5MdP)pararealizarlacampañademaneraindividual 3.Noimportandoloquehagaelcompetidor Situaciónconocidacomoeldilemadelprisionero Noesunproblemadeinformación.Ambosjugadoresconocentodaslasposibilidades. •Eldilemasurgeporqueambosactúandemaneraegoísta. •Elresultadonomaximizaelpago.
- #26 An idea for a new software product is relatively easy to imitate. All these firms have deep software expertise and valuable complementary assets. Once they hear of a new idea, any of them could apply considerable resources to develop their own version of it. The problem is that doing so eliminates the incentive to develop new technologies that might benefit the imitating firm. In fact, it gives them an incentive to hide their ideas from such a firm and instead approach competitors that have a better reputation.
- #28 Caso Alestra Lectura el dilema del innovador: Estudiar qué es el dilema del prisionero Leer el mapa de Borges