Co-opetition - Barry J Nalebuff and Adam Brandenburger (2004)

You realize a management book has done its bit when it survives a decade of conceptual frameworks review. Unlike Porters five forces this book focuses on a Value Net based on customers, suppliers, competitors and complimentors. The inclusion of complimentors makes it particularly interesting. The rest of interaction is much like a collection of factors that are individually analyzed with samples from various industry verticals, technology to airlines to consumer goods.

The factors (called as PARTS) discussed are:

1. Players

2. Added Values

3. Rules

4. Tactics

The factors are finally aggregated with the scope. 

Some striking facts: Most Favoured Customer is essentially a loss to a customer as he gives away his ability to bargain. If a large customer signs an MFC she essentially ensures that she invariably gets to receiving end of the bargain. The same gets to the position of even govt who bargain in favour by making such legislations in changing rules. As a small player or new entrant it may be ideal to enter the market in a subtle short duration bargain than a long term contract and reduce visibility of the competitor. Price wars invariably can be detrimental to a smaller player because it will not permit it to expand a new greener market. Buyers consortiums can be a good way to discover a well bargained pricing in a contractual obligations of indemnity in nature. Pricing bundling and unbundling make the comparables so hard that there is a kind of fog or unknowns that remain in deals that act win-win for everyone. Car buyers remain loyal to their respective brands with direct financial benefits like bundled credit cards. And many more...

For a change, the game theory principles are presented in a very clear explainable fashion than a bunch of number crunching probability payout matrices. 

Of course, when two professors of ivy league B-schools present an authoritative text as this you start thinking, is there any real numeric basis to it. I think there are some rudimentary examples but the explicit complex details are kept out. I will consider this a perfect biz executive book than rigourous research presentation for academics. If you have been a product manager, strategist, a marketer or a sales manager you may find this book almost unputdownable. Someone has read thru the games you have played...