Analyzing Strategic Interaction
Straint helps clients in highly competitive industries understand competitors’ and other players’ reactions to changing market conditions and industry dynamics. As a highly specialized consulting company, we take these strategic interactions into account when developing and analyzing strategies.
Your benefit? An example
A new competitor enters your market and you ask yourself:
What are the opportunities and threats from this situation, and what implications does the new situation have for our current strategy?
How should we modify our positioning, segmentation and product/market strategy?
Which price strategy is ideal when facing this new situation?
Will investing in expanded capacity pay off in the long-term at future prices, and which expansion path is ideal in the new market dynamic?
Straint’s approach to analyzing strategic interaction helps you, as executives, find answers and make the best fact-based decisions, taking upside potential and downside risk into account.
How we do this
Based on the players’ options and their specific preferences, we analyze the issue at hand using proven analytical game theory and wargaming concepts. By using highly sophisticated, customized tools for analysis and simulation, we test all outcome scenarios of action-reaction chains and deduce stable and likely results of the decision at hand. In doing so, we calculate and test literally thousands and sometimes even millions of possible outcomes. Our projects typically require two to three months to complete the entire process.
Typical examples that require other players’ actions to be considered in detail (issues we tackle):