Integrated Strategy:
Monday, January 23, 2023
11:57 AM
• Strategy = a plan of action for achieving a specific objective
§ Subjective definition, different in game theory.
○ Market strat = creates value by economic performance
○ Nonmarket strat = create value through overall performance
○ Integrates strat = combining them, which components are working
together
Simple integrated strategy = using existing rules and reacting to make productive
successful
Higher-order = advocating for new governmental positionings for trade rules
Integrated strategy and innovation:
• No one-size-fits-all approach
• Existing regulations laws may be ill-suited for new products, regulations may not
even exist, or regulatory jurisdiction may not be clear
• Innovated move faster than governments (threat? Opportunity? or both?)
○ As a company grows, scope and # of threats likely to grow
○ Not all about threats. Innovative firms should also be aware of
opportunities in nonmarket environment
Collaboration or Conflict
• As for Permission(AFP, permission-slip innovation) vs. Beg for Forgiveness(BFF)
○ BFF = might be the only shot to actually getting off the ground
§ Uber = faced taxi monopolies created by government
□ AFP - certain defeat
® Advantages: taxis unpopular, new service truly an
innovation
® Positioning: taxis corrupt, uber drivers as small
businesses
® Customers are easy to mobilize
□ Early success does not eliminate nonmarket concerns (Uber
has many--CEO, working conditions, etc.)
○ AFP =
§ HopSkipDrive = was uber an exception
□ Worked with CA PUC, looking for a win after Uber --> "please
® Customers are easy to mobilize
□ Early success does not eliminate nonmarket concerns (Uber
has many--CEO, working conditions, etc.)
○ AFP =
§ HopSkipDrive = was uber an exception
□ Worked with CA PUC, looking for a win after Uber --> "please
regulate us!"
□ Embraced regulation including driver fingerprinting
® Smart integrated strategy due to it being a model
□ Provided services for government for things like fieldtrips -government is a customer
• Pros: good graces with government
• Cons: relying on government can be hard
○ Subsidies/contract can go away
○ You are on government's radar
• Friedman and tech firms "suicide impulse"
○ Tech industries go after other tech firms
• Sunrun company
○ Had to close in Nevada as they changed rules--selling electricity as
wholesale instead of retail value for solar panel owners-- made it
unpopular as it wasn't making as much value
○ But lots of unhappy people and the company changed the law
○ Idea of Government need not be the enemy (subsidies for solar) -- but live
for sword, die by sword
The Fixer:
1. Ask for permission or beg for forgiveness (strategy)
2. Regulatory inaction (institutions)
3. Mobilizing customer base for political ends (interests)
4. Market expansion and nonmarket strategy (strategy)
5. Attacks from entrenched interests (interests)
6. Jurisdiction-specific battles (institutions)
7. Attacks from politicians (institutions)
8. Shaping the design of new regulations (institutions)
Tesla:
• BFF strategy: Musk once hung up on the head of NHTSA
• Regulatory hesitant to be seen as blocking progress in self-driving cars
○ Waymo: we would not exist if there were regulations on self-driving cars
from the beginning
• Is BFF still viable?
○ NHTSA investigation re:autopilot crashes
• BFF strategy: Musk once hung up on the head of NHTSA
• Regulatory hesitant to be seen as blocking progress in self-driving cars
○ Waymo: we would not exist if there were regulations on self-driving cars
from the beginning
• Is BFF still viable?
○ NHTSA investigation re:autopilot crashes
○ Tesla is no longer the only game in town