| Definition |
Competitive Gaming develops information about a company, its markets and customers, and its competitors, then uses that information to simulate the results of important competitive battles. By modelling the results of competitive attacks and counterattacks, Competitive Gaming helps managers see the long term effects of key decisions and develop effective action plans. Competitive Gaming utilises the insights of game theory to recognise classic competitive situations and to develop appropriate strategies for dealing with such circumstances. It helps managers concentrate their strengths against the competitions weaknesses, placing competitors at a distinct disadvantage. |
| Implementation |
Competitive Gaming requires that managers:
- Define the "game" - its scope and boundaries, its players, the key levers and rules
- Model the business system - identify key variables within the system and determine cause-and-effect loops that drive results
- Profile key direct and indirect players, including customers, competitors, key managers, suppliers, and regulators.
- Analyse each players capabilities, incentives and intentions, limitations, and most likely behaviours
- Use the model to run scenarios and evaluate performance consequences
- Develop advantageous strategies and effective action plans
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| Purpose |
Managers use Competitive Gaming to:
- Encourage objective and systematic thinking about future competitive strategies
- Challenge traditional beliefs about how the competitive system functions and how it could be changed
- Demonstrate the consequences that actions in one part of the organisation may have on other parts
- Prepare for important bidding situations, including mergers and acquisitions
- Identify opportunities for successful strategic alliances
- Manage and change processes more effectively throughout the organisation.
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