The Right Game

Use Game Theory to Shape Strategy

Group 2:
Breenda Gabriel Tambuwun - Dina Dwi Ratnasari - Faris Primayudha
Lim Edria Kosasih - Mathew Farrell - Muhammad Nabil Ulwan
Nadya Ariana Dewi - Panser Mukti Prakoso Budiono
Yudhatama Mohamad

01
 01 04 07

Breenda Gabriel T Lim Edria Kosasih M. Nabil Ulwan

Finance Expert Unifier Marketing Master

Our finance expert, that want to be big Our unifier, our angel and our savior. Silence but kind of hilarious person, the
data experts. The grumpy one who always The one who always patient with the person who become the reminder of the
make other group members scared group boisterousness groups.

Family
02 05 08

Dina Dwi Ratnasari Mathew Farrel Panser Mukti Prakoso.B

Finance Expert Economist Feeling Expert

Members The humble one, sneaky but deadly,

the one who always work quietly, but ..
The perfect economist consultant for
your future company. Our expert for this
economic problems
No comment.

03 06 09

Faris Primayudha Nadya Ariana Dewi Yudhatama M

Supervisor Ghosting Expert Editor

Agile, fast, and wide knowledge, careful The silence breaker, and the grumpy one, Editor in chief, just the ordinary guy, who
this guy can observe the problem fast as who always melting the situation. Also, always make some dad's jokes. Deadly
the wind the clever one who always helped Ms.Lim negotiator
to carrying the group
Changing the Game : October
Value Net is a map, that interdependencies us in the game, there are steps to
changing the games :
2020

01 02

Draw the Value Net Asses and Change

Draw your own Value Net for your Asses and change one or more of the
business Value Net elements

Value Net is a map that prompts company to explore all the interdependencies in the game
According to the Game Theory there are five elements :

Players → none of the players are fixed

Added Value → Things player bring to the game it could be raise or lower
Rules → Giving the structure of the game
Tactics → Movement used by players for the game course
Scope → boundaries of the game 09
Changing the Players : NutraSweet
Introduction for the NutraSweet product

Producer Selling Point Profit Main Supplier Competitor

Produced by Monsanto There is three main point : 70% gross margin (very Supplied for Coca Cola Holland Sweetener Company
(Aspartame company) profitable business for: and Pepsi as known as HSC
Low calories
Safe Monsanto) → attractive
Good in taste business to enter

03
 Monsanto's Strategy HSC's Strategy

1. Patent 1. Target Europe Market

Prior to the U.S patent expiration HSC attacked the Eruopean Market

2. Long - term Contract 2. The suppliers

Changing the Players : Both Coke and Pepsi signed new long-
term contract with Monsanto
Every company would want more than
one suppliers

NutraSweet 3. Loyalty 3. The suppliers

Loyalty to its reputation as a safe and Every company would want more than
Talk about both sides strategies :
good in taste sweetener one suppliers

4.Economic of Scale
Cost of advantage

5.Cutting the Price

Deep price cuts
 The Consumer Concerns
Concern regarding the taste and
consumers’ responds, scared of different
taste from customer feedbacks

Changing the Players :

Feels of Frightened
Fright of competitor acquiring exclusive
supply from NutraSweet
NutraSweet
Customers’ perspective: Coca Cola & Pepsi

The Desire
Desire to reduce the dependency to
Monsanto → Encourage HSC
 Changing the Players : NutraSweet
Change of the players

Change the Game Duo & Monopolist Strong Position Cooperative Game Non-Collusive Oligopoly

Coke and pepsi did well to change Form of Olygpoly But HSC became the monopolist in To conclude, we argue this tragedy as a However, from the Coke and pepsi
the game by encouraging the entry strong position for their valuable service, cooperative game. Because all the parties perspective we can state that interaction
of new player that would reduce In the end, there are duopolist (form of perhaps Coke and Pepsi would pay more interest already satisfied. between these two company categorized
oligopoly) in selling of aspartame because to get this valuable service that HSC give. as Non-collusive Oligopoly. Companies
their dependence on NutraSweet they together own all, or nearly all, of the don't work together, but their company
market for a given product or service. decisions still depend on each other
Furthermore, since the HSC already (interdependent)
join the market so there was an
competition between HSC and
Monsanto. Perhaps from this
tragedy assume there is no change
from the demand from Cola and
Pepsi, the suppliers must be provide
an advantage to attract consumer
(pepsi and cola)
Changing the Players : Pay me to Play
Creating good competition considered as the valuable thing in service we can provide, by using Celullar Phone examples will show
how the players can change in the Value Net to bring extra consumer or buyer

Populations Market Expected The Newcomers

In june 1989 craig mc-caw,has 50 As the market expected more The newcomers → 28 million populations Bell south wants to
million populations coverage , made a action, the price increase from acquire lin with good price. Promises 54$ million + 15$ million
bid ($120) for lin broadcasting 103.50$ to 129.50$ while the Offering price between 105$ and 112$ price per share but outbid
corporation that covering 18 million other player coming with 28 with McCaw offering ( 112$ - 118$ price pershare ) than bellsouth
Populations. million populations coverage raise the bid to 120$ + 25$ million expense cap.

McCaw raised the bid to 130$ + added few dollars to close deal +
paid bellsouth $22.5 Million to exit the game. By this lin stock
option were worth $186 Million an added extra billion by this game.
 Cheap Complement : 3DO
Cheap Complement - one can’t function without the other.

Complement The Give Away Sales Royalty

3DO (software) needs the hardware (as The company’s strategy is to give away Furthermore, to create the momentum in In order to induce the manufacturers,
the complement) to be cheaper in order the license to producer of the hardware the market, the hardware must be sold 3DO offers 2 shares of its stock for each
to make money. technology (low cost leadership stategy - below COGS to drive its sales. However, machine sold. They also renegotiated
drive down the price of the the hardware manufacturer refused. royalty from $3 to $6 and extra $3
complementary product) subsidy for hardware sales.

The Competition Results Create Value Product People Forum

Creating competition in the complements In result, 3DO save a lot of money Businesses must both cooperate to create In the middle of the race making Crash 'N
market is the flip side of coopetition (expenses) in hardware manufacturing. value, even while competing to divide this Burn rated as one of the best games for
Complementators are seen only as value among themselves. the 3DO console.
friends which in this example shows a
possibility of legitimate win-loss
opportunities tih complementors (creating
competition among complementors)
Thank you for
your time!
Warm regards, Group 2