This book is about interesting approaches of combining competition and cooperation to arrive at something beyond the traditional text-book theory of competition. The premise is based on the Game Theory which, I admit, I never heard about prior to this. Theories tend to gain academic following, whose devotees publish research papers targeted at similar-minded associates. Not so with this book. It is written in plain English.
Favorite quotes
“[…] Success comes from playing the right game. The biggest opportunities—and the biggest profits—don’t come from playing the game differently. They come from changing the game itself. If you’re playing the wrong game, you need to change it. Even if it’s a good game, think about creating a better one. Changing the game is the essence of business strategy.”
“Competitors play the same game. They work to make similarly smart trade-offs and trade-ons. This dynamic erodes your added value. To protect your added value, you need to create relationships with your customers and suppliers. Without a relationship, you could be selling a commodity. With a relationship, you’re sure to be selling something unique—part of the package is you. The relationship provides a boost to your added value. In the presence of competition, it’s often the key to making money.”
“Because game theory offers a more complete picture of business relationships, it avoids the exclusive focus on competition that characterizes so much business strategy. It recognizes that changing the game doesn’t have to come at the expense of others. It makes it easier to choose the best strategies for you, regardless of whether these strategies are win-win or win-lose. It particular, game theory avoids the embattled mindset that causes players to miss win-win opportunities.”
“Co-opetition recognizes that business relationships have more than one aspect. As a result, it can occasionally sound paradoxical. But this is part of what makes co-opetition such a powerful mindset. It’s optimistic, without being naïve. It encourages bold actions, while helping you to escape pitfalls. It encourages you to adopt a benevolent attitude toward other players, while at the same time keeping you tough-minded and logical.”
Conclusion
The book is a little out of date (1997) in terms of analyzing the
business landscape, but the Game Theory itself has been around for quite some time, so it’s not a big deal.
Great read! Highly recommend. Interestingly enough, if you ever read a book on negotiation techniques, there’s a big overlap with the Game Theory.
