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Strategy, Analytics and Game
Theory
Dr. Sreenivas Rajan
Quantifying Strategy
• Competitive Strategy uses game theory and
competitive measures to quantify strategy
• Core competence uses patent citation
network, brand value and cognition
• Acquisition strategy depends on the future
value of the company and technology
potential of targets
Game Theory and Strategy
• Game theory is a mathematical technique
• It enables us to find dominant strategy
• It provides models that explain the economy
• Strategy is benefited by the interaction,
monopoly competition and industry structure.
• Game theory models situate the company
revenues in industry revenues and GDP
Analytics and Strategy
• Analytics is like financial statement analysis
• Analytics quantify strategy
• Differentiation Strategy requires analytics to
show how different the product is.
• Secondly, Analytics enable companies to
reduce costs and assume cost leadership
position.
Geometry and Strategy
• Angles can be calculated to quantify the
differentiation of strategy
• Company facing competition from two
companies can form a triangular market
share.
• Marginal revenue can be calculated by
drawing demand curves.

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Strategy, analytics and game theory

  • 1. Strategy, Analytics and Game Theory Dr. Sreenivas Rajan
  • 2. Quantifying Strategy • Competitive Strategy uses game theory and competitive measures to quantify strategy • Core competence uses patent citation network, brand value and cognition • Acquisition strategy depends on the future value of the company and technology potential of targets
  • 3. Game Theory and Strategy • Game theory is a mathematical technique • It enables us to find dominant strategy • It provides models that explain the economy • Strategy is benefited by the interaction, monopoly competition and industry structure. • Game theory models situate the company revenues in industry revenues and GDP
  • 4. Analytics and Strategy • Analytics is like financial statement analysis • Analytics quantify strategy • Differentiation Strategy requires analytics to show how different the product is. • Secondly, Analytics enable companies to reduce costs and assume cost leadership position.
  • 5. Geometry and Strategy • Angles can be calculated to quantify the differentiation of strategy • Company facing competition from two companies can form a triangular market share. • Marginal revenue can be calculated by drawing demand curves.