hi !

it was gud one on marketing & competing,most of all it was true !

its something which really matters regradless of the industry we work
whether its software/hardware!


On 4/24/05, bharath <[EMAIL PROTECTED]> wrote:
>  
> For a player to win in the game of business,the others do not have to lose
> 
> 
> 
> It's natural to want to beat the competition, but too often we make this an
> obsession, thinking that the end game is one in which the winner takes all.
> In most economic arenas, there are usually multiple winners. Whether the
> players are shopkeepers, racing car drivers or even entire countries, they
> know that it is vital to compete along certain dimensions, but cooperate on
> others. In business, it's typically never war or peace; it's generally both
> at the same time.
>   
> 
> 
> The author is director of PSi's strategic consulting and private equity
> activities.  In India's price-sensitive markets, shopkee-pers can be
> fiercely competitive when it comes to offering the best deals to customers.
> However, you may have noticed that the same shopkeepers tend to locate
> themselves near their competitors. For example, on some streets, there are a
> slew of companies all selling hardware. Shops on other streets sell only
> musical instruments or furniture. By locating themselves near each other,
> these shops are able to create a vibrant market - one which attracts
> customers who know they'll get the best deal and a wide set of choices.
> Co-location is a way for them to cooperate in attracting customers.
>   
> One way that competitors can benefit from cooperating is to form sub-groups
> that essentially gang up on those outside the group. Pairs of racing cars,
> for example, bunch up to increase their speed. The lead car benefits from a
> drop in resistance when the slight vacuum at its rear is filled, and the car
> in drafting position benefits as it is partially shielded from the wind.
> Similarly, companies that form an industry association, often the biggest or
> most professional, sometimes lobby the government to pass laws that benefit
> themselves at the expense of non-members. They may pressure the government
> to discourage new entrants from coming into the market.
>   
> Even entire economies can compete and cooperate. India and China are in a
> race to become the leading economies in the world. Like two fast sprinters
> rounding the first bend in the track, each can trip the other, or they can
> collide and both knock each other out of the race. In fact, China could use
> India's help in terms of manpower: thanks to the success of the one-child
> policy, the number of people in their labour force will decline over the
> next 15 years. The Chinese labour market is already tightening - Shenzhen
> just raised its minimum wage to $83 per month from $74.
>   
> At the same time, China also competes with India. Its need to protect energy
> supply lines and to contain India go hand in hand. For example, Chinese port
> facilities in Pakistan, Myanmar, Bangladesh and Cambodia are part of an
> effort to create a 'string of pearls' presence around the Indian Ocean, both
> to protect oil routes and to encircle India. A pipeline from the port of
> Gwadar in Pakistan could give China an alternative energy channel, plus a
> base to control shipping lanes in the Arabian Sea.
>   
> The above examples suggest that a player's success is often dependent on the
> cooperation of its competitors. Since we cannot choose our competition, luck
> plays a role in the kind of competitors we have and, therefore, our chances
> of success. It's unfortunate when a player finds himself in competition with
> a hyper-competitor, one who hurts both himself and other players in a
> reckless bid to dominate a market. If one of the players engages in all out
> competition - by poaching employees and customers or pursuing market share
> at the expense of profits - the entire industry's profits can be wiped out,
> as has happened in the US airline industry. The only winners in this
> situation are customers, who benefit from unbelievable prices and service.
>   
> For a player to win in the game of business, the others do not have to lose.
> In fact, we have seen that competitors often compete and cooperate. They
> cooperate to increase the size of the market, and they compete to divide up
> the market. They form teams within the industry, but then gang up on
> non-members. Friends in one arena are enemies in another. 
> It's just business.
> 
> 
> 
> 
> 
> 
>                      
> 
> 
> 
> 
>   Reach me @:  [EMAIL PROTECTED]  
> 
> 
> 
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