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Adam M. Brandenburger - Co-Opetition

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The game of business changes constantly. So should your business strategy.
When a business strategy is so new in design, a new word must be coined to capture its value. Such is the case with co-opetition, a method that goes beyond the old rules of competition and cooperation to combine the advantages of both. Co-opetition is a pioneering, high-profit means of leveraging business relationships.
The Harvard Business Schools Adam M. Brandenburger and the Yale School of Managements Barry J. Nalebuff, scholars and consultants, have developed a five-part business strategy that shows how to do more than play the game of business. It shows how you can change the game of business for maximum benefit.
Though often compared to games like chess and poker, business is different. To win at chess or poker, someone has to lose. In business, long-term profitability doesnt require others to fail. And in business, people are free to change the rules, the players, the boundaries, the game itself. Intel, Nintendo, American Express, NutraSweet, American Airlines and dozens of other companies have been using the strategies of co-opetition to change the game of business to their benefit. By telling stories of these companies, and formulating strategies based on the science of game theory, Brandenburger and Nalebuff have created a book thats insightful and instructive for managers eager to move their companies into a new mindset.
Co-opetition will revolutionize the way you play the game of business.

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This is the best book Ive read on business strategy Read Brandenburger and - photo 1

This is the best book Ive read on business strategy. Read Brandenburger and Nalebuffs Co-opetition. Then read it again. I want to do business with people who think this way.

Warren Spector, Executive Vice President, Bear Stearns & Co. Inc.

A business book thats also a compelling page-turner! Brandenburger and Nalebuff take business strategy to the next level by turning new, complex, sophisticated ideas into significant and easy-to-use business tools. My thinking and decision making are already better.

Kenneth D. Brody, formerly President and Chairman, Export-Import Bank of the United States, and Partner, Goldman, Sachs & Co.

Co-opetition is clearly the businesspersons handbook to take us into the next millennium. Visual, but concise, here you will see strategies developed from real-life situations. Finally a business book of substance rather than warmed-over clichs. The theories expressed will change the way you look at your competitors, your suppliers, and your compatriots. It will definitely change the way you plan and run your business.

Robert R. Taylor, entrepreneur, creator of Softsoap liquid soap, Check-Up toothpaste, and the Obsession and Eternity fragrances

A revolutionary approach to success in businessa form of thinking that is holistic, relational, contextual, and nourishing with a winning outcome for all those involved. Co-opetition could very well be the Eighth Law for Spiritual and Financial Success.

Deepak Chopra, author of The Seven Spiritual Laws of Success

Co-opetition is a word and a book that will make a mark on your thinking and behavior at work and, for that matter, elsewhere. The concepts provided by Professors Brandenburger and Nalebuff will challenge your thinking and your old models of behavior. You will walk away from this book with a useful new business mantra, Change the Game.

Ron Ferguson, CEO, General Re

Co-opetition gives executives what they need most: a technique for making the right strategic decisions, even in the most compli cated business situations. I cant imagine a modern business which wouldnt benefit enormously from this book.

Rebecca Mark, Chairman & CEO, Enron Development Corporation

Health care has recently become a war zone. Co-opetition will help turn it into something else: an arena where cooperation combines with competition to produce greater benefits for everyone.

Dick Brannin, Manager, Program Planning, Kaiser Permanente

Co-opetition will open your eyes to new possibilities for profit in all your business relationships. Its a gift to bestow, not just on your partners, but also on your competitors.

Lydia Marshall, Executive Vice President, Marketing, Sallie Mae

Fast-paced, interesting, and full of cases, I raced through Co-opetition in one marathon sitting. We all recognize that were in a game of business of sorts, but we dont always see the whole game. Having all the elementsplayers, added values, rules, tactics, and scopelaid out was very useful. I found myself mapping our own behavior at PepsiCo along these dimensions just to explore how weve changed the gameand more important, how we can do so in the future.

Indra K. Nooyi, Senior Vice President, Strategic Planning, PepsiCo

Small-company owners like myself will find Co-opetition uniquely helpful and relevant for day-to-day business. I found myself underlining passages which I gave to my sales manager and purchasing agent.

John S. Lapides, President, United Aluminum

In a business environment of constant technological revolutions, Co-opetition provides a powerful, systematic framework to see new market opportunities from different perspectives. Here at Xerox, were using these game theory concepts to seek business value propositions for the dynamic interplay of emergent markets with emergent technologies. Every manager and engineer should have a copy of this brilliant book.

Mark Myers, SVP, Corporate Research and Technology, Xerox

Co-opetition shows you how to benefit from both aspects of business: how to make a bigger pie, as well as get a bigger share of the pie. These practical insights from game theory are helping companies find more profitable business strategies.

F. William Barnett, Director, McKinsey & Co.

U.S. research and developmentabout $175 billion annuallyfaces stern imperatives of both competition and cooperation. The fresh ideas in Co-opetition, based on game theory, may help to renew the contract of science with society. This lively volume should be must reading for R&D executives everywhere.

Rodney Nichols, President and CEO, New York Academy of Sciences

A very useful book, persuasively argued and written with astonishing clarity.

Rabbi Harold S. Kushner, author of When Bad Things Happen to Good People

Co-opetition is the perfect approach for the health-care industry to avoid the destruction of much that is essential to the continuing health of the American people. It should be required reading by managers of health-care providers and health insurance or HMO managers.

John R. Gunn, EVP, Memorial Sloan-Kettering Cancer Center

Brandenburger and Nalebuff have produced an exciting new approach to business strategy. Informed by modern game theory but not mechanically applying it, they have shown that the range of possible strategies is much broader than usually contemplated. Their exposition is light and yet deep and wide-ranging and richly exemplified with examples from business reality.

Kenneth Arrow, Nobel Prize Laureate (Economics)

I was negotiating a big sale. The buyer wanted me to throw in my advance copy of Co-opetition as a sweetener. I said, No. There are some things that arent negotiable.

Herb Cohen, author of You Can Negotiate Anything

to Barbara AMB to Rachel Zo and the loving memory of Benjamin BJN A C - photo 2

to Barbara
AMB

to Rachel, Zo, and the loving memory of Benjamin
BJN

A C URRENCY P APERBACK
PUBLISHED BY DOUBLEDAY
a division of Bantam Doubleday Dell
Publishing Group, Inc.
1540 Broadway, New York, New York 10036

C URRENCY and D OUBLEDAY are trademarks of
Doubleday, a division of Bantam Doubleday Dell
Publishing Group, Inc.

Co-opetition was originally published
in hardcover by Currency Doubleday, a division of
Bantam Doubleday Dell Publishing Group, Inc.,
in 1996.

Library of Congress Cataloging-in-Publication Data

Brandenburger, Adam.
Co-opetition / Adam M. Brandenburger and Barry J. Nalebuff.
p. cm.
A revolutionary mindset that combines competition
and cooperation The Game Theory strategy
thats changing the game of business.
1. Strategic planning. 2. Competition. 3. Cooperation. 4. Game theory. I. Nalebuff, Barry,
1958 . II. Title.
HD30.28.B696 1996
658.4dc20 96-4900

eISBN: 978-0-307-79054-5
Copyright 1996 by Adam M. Brandenburger
and Barry J. Nalebuff
Foreword copyright 1997 by Adam M. Brandenburger
and Barry J. Nalebuff
All Rights Reserved

v3.1_r3

Foreword to the Paperback Edition

T heres nothing so practical as a good theory. A good theory confirms the conventional wisdom that less is more. A good theory does less because it doesnt give answers. At the same time, it does a lot more because it helps people organize what they know and uncover what they dont know. A good theory gives people the tools to discover what is best for them. That was our goal in writing

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