Co-Opetition - Adam M. Brandenburger [133]
1990 $3.9-billion loss
1991 $1.9-billion loss
1992 $4.8-billion loss
1993 $2.1-billion loss
3. Electronic Business Buyer, December 1993. The portmanteau “co-opetition” was coined by Ray Noorda.
4. This is the title of an actual book: Wess Roberts, Leadership Secrets of Attila the Hun (New York: Warner Books, 1987).
5. See C. K. Waddington, OR in World War II: Operational Research Against the U-Boat (London: Elek Science, 1973). There were, of course, many earlier anticipations of game theory: books and papers analyzing specific games like checkers and poker, monographs introducing concepts that were later incorporated into game theory, and books on real-world problems that reveal a style of thinking similar to that of game theory.
6. See Lester Thurow, Zero-Sum Society (New York: Basic Books, 1980).
7. The government does impose antitrust laws and other regulations, but these are only a small portion of the rules by which business is played, and even these can be changed.
2. Co-opetition
1. Henry Ford, for his part, set up his own production studio to film “Good Miles” movie clips, which were shown in the cinemas and whetted people’s appetite for roads. For this history see Drake Hokanson, The Lincoln Highway: Main Street Across America (Iowa City: University of Iowa Press, 1988).
2. Other complements they give away. La Centrale offers free legal services to readers who discover that an advertiser has misrepresented a car. The result: honest ads and a better magazine.
3. Quoted in Fortune, July 10, 1995, cover. Only the Paranoid Survive is also the title of Grove’s new book (Currency/Doubleday 1996).
4. Ibid., pp. 90–91.
5. The IBM OS/2, introduced in 1987, was the first PC-based 32-bit operating system, but it never took off. Apple Macintosh’s System 7 was a second 32-bit operating system, but since it didn’t use Intel chips, that didn’t help Intel either.
6. Wail Street Journal June 12, 1995, p. B3.
7. Because ISDN lines were so slow in being adopted, some took “ISDN” to stand for “It Still Does Nothing.”
8. Wall Street Journal, October 26, 1995, p. B8. Phone companies also benefit from a move to ISDN, because it helps fend off the challenge from wireless communication. With digital compression techniques and additional spectrum allocated by the FCC, there will soon be enough wireless voice capacity to send prices downward, threatening the market for the line carriers. But if phone companies can get people to pay a little more to make video calls using ProShare, then wireless is no longer a threat. The amount of capacity needed is so large that carrying video signals by wireless is currently impractical.
9. From now on, we will use “product” to cover both products and services.
10. “Revisiting Rationalization of America’s Defense Industrial Base,” presentation to Aerospace Industries Association Human Resources Council, October 27, 1992.
11. The exercise of drawing one for the university, our own business, brought home to us how little of modern management thinking has made its way into universities. Students as customers? Working together with donors as partners? It sounds provocative, even heretical. Yet many universities need to start thinking this way. State schools without large endowments seem to be ahead of private schools in being responsive to students, parents, and legislatures. But, overall, there is a growing public resistance to ever-rising college tuition and a growing perception that universities are not well managed. The state of higher education could well be the next big public debate in the United States, after health-care reform. We believe it would further that debate to think about universities as businesses—with customers, suppliers, competitors, and complementors.
12. Although they can be argued to be complementors, too. Giving an exec ed program in a company helps drum up interest in having the company