Operationalizing Value-Based Business Strategy

Melbourne Business School Working Paper No. 2005-04

29 Pages Posted: 30 Apr 2005

See all articles by Joshua S. Gans

Joshua S. Gans

University of Toronto - Rotman School of Management; NBER

Glenn MacDonald

Washington University in St. Louis - John M. Olin Business School

Michael D. Ryall

University of Toronto - Rotman School of Management

Date Written: April 2005

Abstract

Brandenburger and Stuart (1996) identified coalitional games as a means of providing precise notions of value to evaluate strategic opportunities. In this paper, we show how coalitional game theory can be utilized to operationalize these approaches. In particular, we demonstrate the importance of considering full competitive interactions (rather than simply added value) when applying coalitional game theory and also how this can be employed to provide insights into the workings of an existing economic activity as well as to suggest ways that the activity might be altered to a firm's advantage. We illustrate with an application in which an innovator considers whether to commercialize a new technology.

Keywords: Core, strategy, added value, commercialization

JEL Classification: L13, M21, M13

Suggested Citation

Gans, Joshua S. and MacDonald, Glenn M. and Ryall, Michael D., Operationalizing Value-Based Business Strategy (April 2005). Melbourne Business School Working Paper No. 2005-04, Available at SSRN: https://ssrn.com/abstract=708844 or http://dx.doi.org/10.2139/ssrn.708844

Joshua S. Gans (Contact Author)

University of Toronto - Rotman School of Management ( email )

Canada

HOME PAGE: http://www.joshuagans.com

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Glenn M. MacDonald

Washington University in St. Louis - John M. Olin Business School ( email )

One Brookings Drive
Campus Box 1133
St. Louis, MO 63130-4899
United States
314-935-7768 (Phone)
314-935-6359 (Fax)

HOME PAGE: http://www.olin.wustl.edu/faculty/macdonald/

Michael D. Ryall

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada

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