This lecture discusses strategies for firms operating under uncertainty. It explores whether firms should be first or fast followers in introducing new technologies. While being first offers advantages, following allows learning from others' mistakes. The lecture also presents game theory scenarios involving toothpaste and pizza companies to analyze strategic interactions and outcomes like Nash equilibriums. Disruptive technologies and dominant/dominated strategies are discussed. Overall, the lecture examines strategic decision making for firms in uncertain environments using concepts from readings and examples.
Crossing The Chasm by Geoffrey A. MooreSameer Mathur
"Crossing The Chasm" is of biblical importance to anybody who has curiosity regarding the operations of B2B scenario. For book summary by Prof. Sameer Mathur, check here.
game theory dan strategy competitive.pptxIqbal Daulay
The theory of games, or game theory for short, is a method for the study of rational behavior
by individuals and firms involved with interactive decision problems. Game theory is applied during situations in which decision-makers must take into account the reasoning of other decisionmakers. It has been used to determine the formation of business and political coalitions, the optimum price at which to sell products or services, the best site for a manufacturing plant, and even the behavior of certain species in the struggle for biological survival.
The Discipline of Market Leaders by Michael Treacy and Fred WiersemaSameer Mathur
What gives the leading companies an edge over its competitors? According to "The Discipline Of Market Leaders the value of a product or service to the customers can be categorized in terms of efficiency, innovation and customer intimacy. Read the summary prepared by Prof. Sameer Mathur.
Crossing The Chasm by Geoffrey A. MooreSameer Mathur
"Crossing The Chasm" is of biblical importance to anybody who has curiosity regarding the operations of B2B scenario. For book summary by Prof. Sameer Mathur, check here.
game theory dan strategy competitive.pptxIqbal Daulay
The theory of games, or game theory for short, is a method for the study of rational behavior
by individuals and firms involved with interactive decision problems. Game theory is applied during situations in which decision-makers must take into account the reasoning of other decisionmakers. It has been used to determine the formation of business and political coalitions, the optimum price at which to sell products or services, the best site for a manufacturing plant, and even the behavior of certain species in the struggle for biological survival.
The Discipline of Market Leaders by Michael Treacy and Fred WiersemaSameer Mathur
What gives the leading companies an edge over its competitors? According to "The Discipline Of Market Leaders the value of a product or service to the customers can be categorized in terms of efficiency, innovation and customer intimacy. Read the summary prepared by Prof. Sameer Mathur.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
3. Dr. Jorge Ramírez Medina
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 Ramírez Medina
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.”
6. Dr. Jorge Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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 Ramírez Medina
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
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.
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.
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
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
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.
Caso Alestra
Lectura el dilema del innovador:
Estudiar qué es el dilema del prisionero
Leer el mapa de Borges
