Co-Opetition - Adam M. Brandenburger [4]
Early on, we discovered the skills of Rena Henderson, who does brilliant, high-speed manuscript editing from her Monterey, California, company, As the Word Turns. Never have we felt that someone knows us so well who’s never met us.
At every stage in the writing of this book, we benefited enormously from the many people who read and criticized our various drafts. Academic colleagues who provided informed critiques included: Bharat Anand, Sushil Bikhchandani, Joe Bower, Jeremy Bu-low, David Collis, Ken Corts, John Geanakoplos, Oscar Hauptman, Bob Kennedy, Tarun Khanna, Elon Kohlberg, Ben Polak, Julio Rotemberg, Roni Shachar, Carl Shapiro, Debra Spar, and Elizabeth Teisberg.
Current and former students who gave us valuable feedback on drafts of the book included: Terry Burnham, Putnam Coes, Amy Guggenheim, Roger Hallowell, Walter Kümmerle, Jon Levin, Matt Littlejohn, Amir Makov, Andrew McAfee, Robin Mendelson, Roslyn Romberg, Ed Simnett, Hunt Stookey, Don Sull, and Mike Troiano. Eric Muller’s comments were so complete, they could almost have been published as a separate work. Old friends and new friends who offered insights from their businesses include: Christine Bucklin, Jim Cooke, Bob Cozzi, Bob Davoli, T. Hoffman, Mark Kaminsky, Jeff Keisler, John MacBain, Frank Murphy, Elizabeth Shackleford, Lenny Stern, Patrick Viguerie, Jason Walsh, Mary Westheimer, and Evan Wittenberg.
Close friends and family members were especially patient and helpful in this project. Diane Rubin, Jim Cook, Lionel Fray, Larry Hilibrand, Warren Spector, and Bob Taylor reviewed early drafts. Above and beyond any call of duty or friendship, Ken French, Stephen Scher, and John Lapides went over every page with us. Their unstinting efforts are deeply, deeply appreciated. Ennis Brandenburger went over all the material with a meticulous mother’s eye. Back at home, our greatest debt is to Barbara Rifkind and Helen Kauder, who, along with their critical reading of this book, are great supporters of everything we do.
We have been fortunate to be helped in this project by so many people in all different walks of life—CEOs, human resource managers, marketers, small-business owners, lawyers, entrepreneurs, nonprofit managers, academics, business school students, undergraduate students, artists, and mothers. We hope that we have succeeded in writing a book that will be useful to all those who have so generously helped us (and to many other people, too).
ADAM BRANDENBURGER
BARRY NALEBUFF
January 1996
Contents
Cover
Title Page
Copyright
Foreword to the Paperback Edition
Production Notes
Part I: The Game of Business
1. War and Peace
2. Co-opetition
Thinking Complements
The Value Net
Surfing the Net
Playing Multiple Roles
Friend or Foe?
3. Game Theory
Added Value
Rules
Perceptions
Boundaries
Rationality and Irrationality
The Elements of a Game
Part II: The Parts of Strategy
How to Change the Game
4. Players
Becoming a Player
Bringing in Other Players
Changing the Players
5. Added Values
Added Value of a Monopoly
Added Value in a Competitive World
Added Value of a Relationship
Imitation
Changing the Added Values
6. Rules
Contracts with Customers
Contracts with Suppliers
Mass-Market Rules
Government Rules
Changing the Rules
7. Tactics
Lifting the Fog
Preserving the Fog
Stirring Up the Fog
Is PART the Whole?
8. Scope
Links between Games
Links through Added Values
Links through Rules
Links through Tactics
The Larger Game
9. Being Ready for Change
Notes
Part I
The Game of Business
1. War and Peace
“Business is War.” The traditional language of business certainly makes it sound that way: outsmarting the competition, capturing market share, making a killing, fighting brands, beating up suppliers, locking up customers.1 Under business-as-war, there are the victors and