Stories #25 and #26 discussed the general and more specific setup of Strategic Gaming, which I personally find to be an exciting approach to simulating the real-life business environment. This approach focuses on the strategic and tactical moves of competitors, as well as how the market—including competitors, customers, and other stakeholders—reacts to these actions. The game-like simulation with multiple teams mirrors business situations and allows participants to experience the dynamics of how actions trigger counteractions and impact competing companies.
For example, consider an industry in Europe currently undergoing consolidation. Given the number of key players, four teams of five people each would participate, along with teams representing customers, regulators, shareholders, and investment banks managing mergers and acquisitions. The simulation would involve three or four moves, starting with two tactical steps directly following each other, followed by a major event disrupting the market. This would require a new reaction and a final strategic step. Options could include a merger or acquisition in the consolidating market, which would then impact the remaining market.
A referee-like observer will maintain overall oversight of the game. A control team will ensure adherence to the rules and provide support and rulings in the event of disputes between parties. Investment bankers will prepare data to evaluate the financial effects of the moves by different competitors, forecasting the impact on the long-term financials of each competitor. Consumer representatives will assess market dynamics and how each move will affect customer behavior. Additionally, game theory tools can be incorporated to predict analysis-based results and outcomes of various moves, negotiations, actions, and conflicts.
Overall, the game requires significant manpower and time for preparation, stretching over several weeks. It is not only enjoyable for participants but also provides an in-depth understanding of the market and how one’s actions can trigger reactions different from those anticipated. Participants usually find the experience both insightful and fun.
