WEBVTT

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The Power Game in general is
defined by being in a market

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where suppliers are
concentrated, so you tend to

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find the same competitors over
and over.

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Customers are concentrated, so
you will negotiate with the same

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companies multiple times in a
series of repeated games.

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The Power Game applies to
industries such as component

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manufacturers in the technology sector,

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or heavy equipment manufacturers in heavily
concentrated industries such as oil and gas.

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To do well in the Power Game from a pricing strategy
and model perspective –

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to stay in the game – you need
to understand the market,

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how it works, and
how your competitors behave.

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So good market intel.

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You want to have strategy.

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You want to apply game theory
concepts to how you negotiate

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and play the game over multiple
rounds of negotiations.

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I can think of two main
challenges companies face when

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playing the Power Game.

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The first one is not succumbing
to the pressure of sales targets

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and the need we have to win
against our competitors.

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The second one, especially when
there's more supply than demand,

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it's then easy to try to take
advantage of the situation and

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take more value from your
customers than you should in

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order to build that long
standing relationship.

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Three things to build and
maintain competitive advantage

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when playing the Power Game.

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First, you want to differentiate
yourself against your

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competitors at the customer level.

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Second, you want to develop good
negotiation skills, stay calm

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under pressure, and have tools
that allow you to see the big picture.

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And third, good pricing
governance.

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It's very easy to get drawn into
a price war just to win this deal.