Category Archives: Strategy

Amazon.com: Business Services

Bezos wants Amazon to run your business, at least the messy technical and logistical parts of it, using those same technologies and operations that power his $10 billion online store. In the process, Bezos aims to transform Amazon into a kind of 21st century digital utility. It’s as if Wal-Mart Stores Inc. (WMT ) had decided to turn itself inside out, offering its industry-leading supply chain and logistics systems to any and all outsiders, even rival retailers. Except Amazon is starting to rent out just about everything it uses to run its own business, from rack space in its 10 million square feet of warehouses worldwide to spare computing capacity on its thousands of servers, data storage on its disk drives, and even some of the millions of lines of software code it has written to coordinate all that.

More at Businessweek.com

Tata-Corus: A game theory analysis

Tata Steel’s acquisition of Corus shows how coordinated strategies can yield greater benefits even in a competitive marketplace. The strategic fit of Corus’s range of high-end products and know-how, and its access to developed markets, combined with Tata’s low-cost access to ore, efficient basic steel production, and its own market access certainly provide a solid starting point. What they have done is breaking out of the self-limiting constraints of non-cooperative reasoning that actually ends up being suboptimal. Instead, a coordinated solution through collaboration has led to the potential for greater gains for both.

Here is Shyam Ponappa’s detailed article in Business Standard

Related links
  Roger McCain on Game theory
  Wikipedia on Game theory
  On Hamada diagram (.pdf file)

Nintendo DS:Changing the rules of the game?

Video gaming is a cyclical industry in which new consoles are launched every five or six years. In the last cycle, which began in 2000, Sony’s PlayStation 2 emerged as the clear victor, far outselling Microsoft’s Xbox and Nintendo’s GameCube. The next cycle will pitch Microsoft’s Xbox 360, launched last year, against the PS3 and the Wii. With each cycle the power of the hardware increases, making possible better graphics and more complex games. But Mr Iwata believes the industry has reached a crossroads: by designing products for existing gamers and neglecting non-gamers, it undermines the prospects for future growth. There have even been signs in Japan that the market was starting to shrink. “We need something radical to change the situation,” says Mr Iwata.

More on Nintendo’s radical change at Economist