Explore various strategic choices regarding price and non-price variables undertaken by a company as it attempts to establish and sustain a competitive advantage in a market as-a-game. In so doing, apply your knowledge and use various examples of game theory and transactions cost economics applications in illustrating how a player makes those strategic choices to reshape strategy.
Your essay should critically assess the value-added of game theory tools and use case study and your Workshop case research. A key objective is to outline the overlap between micro-economics and game theoretic concepts introduced in this Module. Using academic literature and coupled with the practical case research undertaken by your group during the Workshop or coupled with the research you may have undertaken in support of your individual Workshop Alternate Assignment, illustrate how the economics of game theory can be used to reshape strategy. So, please do use real case study materials where appropriate.
Companies in Workshop: Netfix and Disney Plus
Essay Context include:
Conjectural Variation Matrix
T/3 F Framework (Type, Technology, Time)
Game Dimension/ Game Theory
The best way to approach the assignment is to imagine that the essay is to be read by senior management. Their concerns may have to do with (i) market entry (ii) product launch (iii) challenges of technology or (iv) prices. So, proceed to analyse the market-asa-game, identify and filter the competitive threat, assess the action-reaction sequence of events and evaluate your results. And always provide a risk assessment of the likely competitive threats facing a company on choice of strategy
You must try to impress upon the team. One way to do that is to convince them of the value-added of applying economic concepts and economic reasoning from game theory and transactions cost economics to an evaluation of their company strategy.
You are an MBA consultant. Here is an opportunity to reflect on both the research undertaken by you at the Workshops and on the learning obtained in the preparation of your assignments for this Module. In any consultancy, you must try to impress upon the team. One way to do that is to convince them of the value-added of applying economic concepts and economic reasoning from game theory and transactions cost economics to an evaluation of their company strategy.
So what do you need to do?
Think about the consumer – What do we know about them? How do they make decisions?
Think about the firms – are there advantages they can exploit over their rivals?