Co-Opetition - Adam M. Brandenburger [137]
20. Truth be told, while we were busy writing this book, our friend Gus Stuart went to Club Med and vacationed for us. In addition to his reports, our data come from student papers and “Club Med (A) & (B),” Harvard Business School Publishing, 9-687-046 and 9-687-047, 1986.
21. Many of the facts in this story are taken from the New York Times, August 19, 1995, p. 7.
22. Ibid.
23. Ibid.
24. Ibid.
25. Some of the information in the following story is drawn from “The Free-Rider Problem: Airline Frequent-Flyer Programs,” Harvard Business School Publishing, 9-794-106, 1994.
26. Los Angeles Times, June 8, 1986, section 4. (P.S.—Who buys a sports car for fuel efficiency?)
27. Initially, American’s offer was only to qualified frequent flyers. Delta then matched for people who bought their ticket with an American Express card. Then Eastern, United, and everyone matched, and all the restrictions disappeared.
28. Here’s the calculation: A total of 1.2 trillion miles, with 25,000 miles required for a free flight, translates to 48 million free tickets. At 500 people on a 747, that’s nearly 100,000 roundtrips of a full 747.
29. National Car Rental has savings bonds as one of its reward options.
30. Indeed, you don’t want to give away your product to people who value it below what it costs you to provide it. In such cases, it’s more cost-effective to give people cash.
31. Why don’t the long-distance phone companies give out free voice mail, call waiting, and three-way calling as a reward to loyal customers? The problem is that these services are currently provided by the local, not the long-distance, carrier. And the local carrier gets paid an access charge by the long-distance carrier whether or not a call is completed. Even so, the long-distance carriers might want to buy these services in bulk from the local carriers and give them to their customers.
32. Sharon Oster, Modern Competitive Analysis, 2nd ed. (New York: Oxford University Press, 1994), p. 12.
33. Bruce Henderson, “The Origin of Strategy,” in C. Montgomery and M. Porter, eds., Strategy: Seeking and Securing Competitive Advantage (Boston: Harvard Business School Press, 1991), pp. 3–4. The biologist’s description of Gause’s principle is: “Two species with identical ecologies can’t live together in the same place at the same time” (E. R. Pianka, Evolutionary Ecology, 4th ed. [New York: Harper & Row, 1988], p. 221).
34. See John Kay, The Foundations of Corporate Success: How Business Strategies Add Value (London: Oxford University Press, 1993), reviewed in The Economist, April 17, 1993, p. 65.
35. See Richard D’Aveni, Hypercompetition (New York: Free Press, 1994).
36. See David Collis, “Understanding Competitive Advantage: The Role of Positioning, Sustainability, and Capabilities,” Harvard Business School working paper, 1995.
37. Some of the information in the following story is drawn from “Minnetonka Corporation: From Softsoap to Eternity,” Harvard Business School Publishing, 9-795-163. 1995.
38. “Softsoaping P&G,” Forbes, February 18, 1990, p. 91.
39. See Hirotaka Takeuchi and Ikujiro Nonaka, “The New New Product Development Game,” Harvard Business Review, January/February 1986, pp. 137–46.
40. Our analysis of IBM’s mistakes in the PC business was inspired by the illuminating discussion in Neil B. Niman, “Lesson 3: Defending Yourself When Creating a Standard,” in Standards: Strategic Lessons from the Computer Industry (manuscript, Whittemore School of Business, University of New Hampshire), especially pp. 2–5. Niman sums up the turn of events as follows: “[IBM] nurtured cooperation, only to discover that having made it to the dance, their partner went off courting others, leaving them all alone.”
41. See Paul Carroll, Big Blues: The Unmaking of IBM (New York: Crown, 1993), pp. 119, 131. Bill Gates discussed his one-time willingness to sell 30 percent of Microsoft to IBM in an interview in Computer World, May 24, 1993, p. 123.