Competitive Risk Analysis and Strategy
- Innovation and Competitive Risk: With Strategic Gaming, we helped a technology company realize that perceived threats from competitors did not warrant high expenditures on a particular set of innovations. Based on a systematic inspection of the other companies’ goals and incentives, we found the threats were not real. The competitors would be taking serious risks with limited value by challenging our client. Further, one of the client’s two major competitors could be brought into a strategic alliance at a low cost, which would be a strong deterrent to market entry by the other competitor and ensure the winning of a crucial contract. This result allowed the client to save tens of millions of dollars and invest its money and management’s attention on much more attractive products and markets.
- Infrastructure and Competitive Risk: A business unit of an oil and gas client was concerned that several key pieces of infrastructure were in danger of being marginalized. We employed Strategic Gaming and embedded real options analysis to understand how the client’s position in this infrastructure would be influenced by the actions of other players in the near future, and how the client could take actions to preempt, mitigate, or reverse any negative effects. The dynamic road maps provided to the clients clear strategic and tactical guidance for stakeholder engagement and for understanding what options should be pursued depending on key signposts. As a result, the client was able to be proactive, avoid certain marginalization, and significantly enhance value.
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