Pretend you're in the following situation: A and B are two different cloth making enterprises. Both companies A and B were successful in bringing their products to market. However, because company A was the first to make a move, a significant portion of the country's population chose to use the product manufactured by company A because they had already established a positive reputation in the market. Although the revenues of company A were increasing, the company B was struggling to maintain its position in the market with their goods. Because firm A was the first to make a move, it enjoys a competitive advantage over company B in the marketplace. 1. Prove that the situation IS а game (explain strategic interaction/conflict) and solve the game with appropriate approach.
Pretend you're in the following situation: A and B are two different cloth making enterprises. Both companies A and B were successful in bringing their products to market. However, because company A was the first to make a move, a significant portion of the country's population chose to use the product manufactured by company A because they had already established a positive reputation in the market. Although the revenues of company A were increasing, the company B was struggling to maintain its position in the market with their goods.
Because firm A was the first to make a move, it enjoys a competitive advantage over company B in the marketplace.
1. Prove that the situation IS а game (explain strategic interaction/conflict) and solve the game with appropriate approach.
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