Business Briefing: The Right Game: Use Game Theory to Shape Strategy

Keywords: Game Theory, Coopetition, Business Strategy, Value Net, Competitive Advantage
Source: Harvard Business Review
Link: Read the full article on HBR.org
Authors: Adam M. Brandenburger and Barry J. Nalebuff
Published: July 1995
Est. Read Time (Original): ~80 minutes

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The Core Idea

Brandenburger and Nalebuff argue that the "business is war" metaphor is dangerously misleading. They introduce the concept of "coopetition", asserting that business is a mix of cooperation (to create value) and competition (to capture value). Their central thesis is that successful strategy is not about playing the game you find, but about actively shaping the game to your advantage. To do this, they provide two key tools: the Value Net (a map of all players: Customers, Suppliers, Substitutors, and Complementors) and the PARTS framework (the five levers for changing the game: Players, Added Values, Rules, Tactics, and Scope).

Why It Matters for Business Today

This framework provides a dynamic alternative to static, purely competitive models of strategy, encouraging leaders to become architects of their business environment.

• Moves Beyond a Zero-Sum Mindset: The concept of coopetition forces leaders to look for win-win opportunities, even with rivals (substitutors). The GM Card example shows how one company's move can change the industry dynamic to benefit multiple players by ending a destructive price war.

• Identifies Overlooked Players: The Value Net is a critical tool for seeing the whole game, especially the often-ignored role of complementors, businesses that make your product more valuable (e.g., software for hardware). A complete strategy must account for all four player types.

• Provides an Actionable Toolkit for Change: The PARTS framework is a powerful, practical checklist for strategic innovation. Instead of just reacting to market conditions, leaders can proactively ask: Can we change the Players? Can we change their Added Values? Can we change the Rules? Can we use Tactics to change perceptions? Can we change the Scope of the game?

The Strategic Question for Leaders

The authors argue that the essence of strategy is to actively change the game you are in.

The PARTS framework gives us 5 levers for changing the game: Players, Added Values, Rules, Tactics, and Scope.

When you look at your industry, which of these 5 levers do you feel is most overlooked, underutilized, or overused?

My Thoughts:

My answer is (R) Rules. There’s a whole meta-game of managers and people trying to establish unwritten "rules" about what a "business post" should or shouldn't be on Linkedin. The real strategic opportunity is to challenge and ignore these manufactured rules.

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