Game With Monopoly Investing in Additional Capacity New Firm Chooses New Firm Enters New firm does not enter Monopoly Monopoly Chooses Chooses High Price Low Price High Price oW Price Monopoly gets Monopoly gets Monopoly gets Monopoly gets $3, New firm gets $4, New firm gets $5, New firm gets $4, New firm gets $3(S millions)$0 9-11
9-11 Game With Monopoly Investing in Additional Capacity New Firm Chooses New Firm Enters New Firm Does Not Enter Monopoly gets $3, New firm gets $2 High Price Low Price Monopoly Chooses Monopoly gets $5, New firm gets $0 Monopoly gets $4, New firm gets $0 Monopoly Chooses Monopoly gets $4, New firm gets –$3 High Price Low Price ($ millions)
Shanghai COS Case 1. How should scos segment Chinas sIM card marke t? 2. Which product-market seems most promising for scos? What are the financial impacts of the various combinations of products and customers? 3. Is it a good move to accept the orders for 600.000 low-end 16-sTK cards? 4. How should scos position itself in this very competitive marketplace? 5. What are strategic tensions inherent in the decision that scos makes? 9-12
9-12 Shanghai COS Case 1. How should SCOS segment China's SIM card How should SCOS segment China's SIM card market? market? 2. Which product Which product-market seems most promising market seems most promising for SCOS? What are the financial impacts of for SCOS? What are the financial impacts of the various combinations of products and the various combinations of products and customers? customers? 3. Is it a good move to accept the orders for Is it a good move to accept the orders for 600,000 low 600,000 low-end 16 -STK cards? STK cards? 4. How should SCOS position itself in this very How should SCOS position itself in this very competitive marketplace? competitive marketplace? 5. What are strategic tensions inherent in the What are strategic tensions inherent in the decision that SCOS makes? decision that SCOS makes?
Competitive Forces Five Forces Determining Segment Structural Attractiveness Threat of Potential entrants 1. intense segment (Threat of rivalry mobility 2. new entrants 3. substitute products Su Industry competitors buyers' growing (Supplier segment rivalry) (Buyer bargaining power power) suppliers growing bargaining Substitutes power (Threat substitutes)
9-13 Five Forces Determining Segment Structural Attractiveness Competitive Forces Threat of: Threat of: 1. intense segment intense segment rivalry rivalry 2. new entrants new entrants 3. substitute products substitute products buyers’ growing buyers’ growing bargaining power bargaining power suppliers’ growing suppliers’ growing bargaining bargaining power