Strategy & Competition


***Must use game theories as used in the attached ppt.
Assignment Question
Critically examine how the economics of non-cooperative game theory
complements the strategy choice of a company in a competitive game, thus
avoiding strategic missteps. It is imperative that you use case study and
Workshop case research in presenting your arguments.
Assignment Objective
That part of strategic analysis based on game theory tools looks poised to gain in
importance. The key objective is to write a critical essay outlining the overlap between
the micro-economics and the game theoretic concepts introduced in this Module.
Coupled with the practical case research undertaken by your group during the
Workshop or coupled with the research you may have undertaken in support of your
individual Workshop Alternate Assignment the economics of game theory could
reshape strategy. So, please do use real case study materials where appropriate.
Hint: The best way to approach the assignment is to imagine that the essay is to be
read by senior management. Their concerns may have to do with (i) market entry (ii)
product launch (iii) challenges of technology or (iv) prices. So, proceed to analyse the
market-as-a-game, identify and filter the competitive threat, assess the action-reaction
sequence of events and evaluate your results. And always provide a risk assessment
of the likely competitive threats facing a company on choice of strategy.
Remember: You are an MBA consultant. Here is an opportunity to reflect on both the research
undertaken by you at the Workshops and on the learning obtained in the preparation of your
assignments for this Module. In any consultancy, you must try to impress upon the team. One
way to do that is to convince them of the value-added of applying economic concepts and
economic reasoning from game theory and transactions cost economics to an evaluation of
their company strategy.

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