Co-Opetition - Adam M. Brandenburger [140]
18. The mediator could easily be replaced by a simple computer program.
19. With a 20 percent discount rate, a company with a 10 percent growth rate should have twice the P/E of a company with flat growth—hence the difference in price.
20. A problem with these agreements is that they force the seller to bear a large amount of risk or illiquidity as well as make the seller dependent on the new owner’s management decisions. This limits the circumstances in which they can be used.
21. Or if the components are collectively overpriced, they can run this transaction in reverse.
22. Wall Street Journal October 6, 1995, p. B9C.
23. JT (Japan Telecom) and TWJ (Teleway Japan) can also be hooked up to this service.
24. For more information on Value Pricing, see “American Airlines’ Value Pricing,” (A) and (B), Harvard Business School Publishing, 9-594-001 and 9-594-019, 1993. The (A) case is the source of the Crandall quote.
25. “AMR’s Bid for Simpler Fares Takes Off,” Wall Street Journal April 9, 1992, p. Bl.
26. South Florida Business Journal May 7, 1993. It was widely reported that Tisch made this claim, although it’s hard to find an original source for it.
27. The act prohibited the cable companies from raising their rates to pay for retransmission consent. However, that prohibition was only for one year.
28. Broadcasting and Cable, May 17, 1993.
29. ABC was then owned by Capital Cities, which also owned the cable channel ESPN. ABC was paid 12 cents per subscriber for creating an ESPN spin-off, ESPN2. NBC owned cable channel CNBC and used its capabilities to create America’s Talking, a new all-talk cable channel. (New York Times, August 26, 1993, p. D18.)
30. New York Times, September 28, 1993, p. Dl.
31. For a postmortem discussion of who was right and wrong, see “Intel or IBM: Who Do You Trust?” PC Magazine, February 7, 1995, p. 29.
8. Scope
1. Even if two games don’t share a common player, they can be linked by a chain. If games A and B have a common player, and so do games B and C, then games A and C are also linked.
2. Some of the information in the following story is drawn from “Power Play (B): Sega in 16-Bit Video Games,” Harvard Business School Publishing, 9-795-103, 1995.
3. “The Charge of the Hedgehog,” Forbes, September 2, 1991, p. 42.
4. According to a 1993 “Q” survey.
5. “Games Companies Play,” Forbes, October 25, 1993, p. 68.
6. “Nintendo’s Show of Strength,” Dealerscope Merchandising, February 1991, p. 15.
7. President’s Message, Nintendo Co., Ltd., 1991 Annual Report.
8. At the new reduced price level, the original 8-bit NES was renamed My First Nintendo and marketed as an entry-level system.
9. Dorothy Leonard-Barton, Wellsprings of Knowledge: Building and Sustaining the Sources of Innovation (Boston: Harvard Business School Press, 1995), ch. 2.
10. The decision not to create competition in the new-product market is the mirror image of Ford Motor Credit’s strategy of creating competition in a complements market.
11. 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.
12. Perhaps some pumps could be placed in the kitchen or guest room, where previously there had been no bars of soap. But in the bathroom, liquid soap would replace bar soap. If liquid soap wasn’t pure cannibalization of bar soap, it was perhaps “99 and 44/100” percent pure cannibalization.
13. Only one major brand of bar soap, Procter & Gamble’s Zest, was detergent-based.
14. The electronic publishers may well be the authors themselves.
15. Sega offered a $40 adapter that made it possible to play its older 8-bit games on the Genesis. It was ironic that Sega was the one to engineer compatibility, since Sega’s 8-bit system had failed to establish a significant installed base.
16. Gary Jacobson, analyst at Kidder, Peabody, quoted in “Nintendo Cools Off,” Advertising Age, December 10, 1990, p. 20.
17. 20th Century-Fox offers the deal “Buy FernGully and get $5 off Star Wars.