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All ACI programs teach students how to overcome the most challenging
competitive intelligence issues. The following are sample lessons
taught in:
| Problem Sets |
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WAR (Way Around Risk) Gaming |
Anticipating Competitor Actions in a Constantly Changing
Market
Creating War Games for Your Executivese.
How to Devise an Entry Strategy Against a Giant
1. Anticipating Competitor Actions in a Constantly
Changing Market
Your company is developing a new line of products, an investment
of $36 million. The new line is based on your company's existing
competence in processing technology, and should have a synergy,
marketing wise, with your other very strong, market-leading brands.
The market has a big competitor, K, with 34% of the share, and
three others (W, H, and Z) with around 10% each. Thirty- six percent
is divided among regional players. Your marketing plan calls for
a national rollout within a year, and 7 % market share within 18
months.
Questions
1. Based on the competitor analysis framework, which competitor
would you target? Which one of the four-corners is the most relevant
for this decision (strategy, drivers, capabilities or management
assumptions)?
2. Which competitor would you avoid and why? How do you avoid a
competitor? Would a strategic map help?
3. Running a war game with the above players, how do you quantify
the risks associated with each potential strategy?
2. Creating War Games for Your Executives
Your company's executives are going on an annual strategy retreat.
They asked you what could CI contribute to this meeting. You suggested
a CI-based war game to chart the industry's future. In support of
your claim, you have to summarize the benefits of a war game to
strategic planning, assess how much work is involved, and present
the expected outcomes of the game.
Questions
1. Is a war game appropriate for a senior strategy forum? How
is it superior to senior executives' own experience in the industry?
2. How does one draw scenarios, and what type of scenarios are drawn
using a war game? Why is a war game superior to a typical scenario
building exercise using computer simulation and an outside consulting
firm?
3. What early warning system can spring up from a good war game?
Why is it superior to interviews as a method of intelligence needs
assessment?
4. How does one perform strategic risk identification and assessment
within in a war game framework?
3. How to Devise an Entry Strategy Against a
Giant
The problem of Fuji is that it was running against a huge and
entrenched competitor, Kodak. Its quest to enter the U.S. market
was at best somewhat suicidal. Kodak held between 75 to 90 percent
of the market share in different segments, and tied major distribution
channels as an entry barrier. What entry strategies held a chance
in hell against such a formidable competitor?
Questions
1. Can you win against a much larger competitor, on its territory,
with enormous entry barriers? What entry strategies work under these
conditions? What philosophy is required to make the entry successful?
2. What CI data will help you in pushing the competitor to commit
significant resources to the wrong cause?
3. What can you do, as the larger competitor, to block entry into
your own markets by a smaller, foreign competitor?
4. Can you draw a scenario of what the outcomes of the battle are
going to be based on a CI analytical framework? (Hint: If you are
talented, yes!)
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