Kerith discovers sixth force
Kerith Diley, WG'07
Issue date: 11/13/06 Section: Perspectives
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What a delight to learn that Strategy Guru Michael Porter didn't delve deep enough with his Five Forces (WG' 08, sorry to ruin an insight from Management 701, but it's so juicy, I just couldn't resist!).
There's a Sixth Force out there...
I guess when you're starting with "What is Strategy?," it's easy to miss a force here or there...
Drum roll please...the Sixth Force is...
Complements.
Like all things strategic, so obvious and yet so insightful, it's easy to miss.
As usual, all these deep thoughts reduce my thinking to Wharton and dating. So, how do these 6 forces play out in this TiCO2 building?
For kicks and giggles, let's say that Wharton men are the suppliers, Wharton women are the buyers in the dating value chain and there's no firm betwixt (no hateration intended toward match.com or shaadi.com).
Supplier Power: High
So, here's what I can't fit into a Wharton framework:
# of Buyers < # of Suppliers, yet Suppliers have more power?
Women are scarce and differentiated at Wharton, yet we cannot command premium status and, in fact, are actually relegated to commodity status.
Actually, the progressive/feminist sector has a framework that explains this apparent paradox, but if I discussed it - it involves deep-seated insecurities about the role of women and power in our society - I'd either put people to sleep or piss 'em off.
Since I don't have time to ignore angry emails this week, I'm going to move on...
Buyer Power: Low
Women in grad school = marginal buying power...except at Taco Bell.
Between no buyer volume opportunities and extreme price sensitivity, bargaining leverage vanishes.
Hmmm...product differentiation, brand identity and limited quantity (yes, women do compete on Cournot) don't appear to work...so that leaves threat of backward integration & buyer information, which don't really work so well in dating…Wharton Women must source competitive advantage elsewhere...
Barriers to Entry: Medium
High GMAT scores, college GPA qualified by Latin, the ability to position (or what politicos call "spin") prior work experience as being on a significant leadership track are the standard Barriers to Entry for Wharton Men.
Threat of Substitutes: Low
In general, the emotional switching costs for women are high and for some reason, female buyers are not inclined to substitute. So, Wharton men, despite their surfeit, face virtually no threats of replacement.
Another contributing factor is that elite Ivy League schools such as Penn see no value in initiating joint ventures with firefighting schools. Or training rotations with hotels in Pushkar, India.
And, oddly, all these are poor substitutes within a context absent of a "Men of Wharton" calendar in production...
Competition: Low
What was it about that no firefighting school or Pushkar hotel exchanges? To reiterate: Wharton dudes face competition only when women seek out diverse and high-value channels, which rarely happens because again, no firefighting schools etc...you get the idea.
So, Wharton women wishing to exit the dating industry struggle because there aren't other high-value channels available.
Wharton women aren't fans of harvesting - of course, don't ask anyone in Siggelkow's 1:30pm class what "harvest" means because apparently we don't even understand Beta or Amortize (what's a fixed cost again? I recall Prof Ittner telling us it could be variable…but maybe I just don't want to commit?)
Complements: Medium
So, how does this brand-spanking new force fit into Wharton's robust dating scene?
I posit the Wingman theory.
Particularly, when the Wingman is of the opposite sex. Female Wingmen, for their male Non-Sexual Crush, have a competitive advantage over their male Wingmen counterparts that can't be quantified...even at Wharton.
As do Male Wingmen. Essentially, employing Wingmen helps realize previously untapped synergies for all (let's all join hands with Mike Porter and hum kum ba ya).
Given this market analysis, which strategy should each group pursue?
Strategy for Women:
Go outside Wharton; high-value channels include: Byblos, Smokey Joe's and WIVP.
Strategy for Men:
Go for Wharton Women; they are hugely undervalued asset.
But, remember: Entry strategies that involve using Outlook Appointments for dates are too low-beta. Signal better. Heck, even a butterfly spread beats Outlook.
And my personal strategy? Search for the seventh force…
There's a Sixth Force out there...
I guess when you're starting with "What is Strategy?," it's easy to miss a force here or there...
Drum roll please...the Sixth Force is...
Complements.
Like all things strategic, so obvious and yet so insightful, it's easy to miss.
As usual, all these deep thoughts reduce my thinking to Wharton and dating. So, how do these 6 forces play out in this TiCO2 building?
For kicks and giggles, let's say that Wharton men are the suppliers, Wharton women are the buyers in the dating value chain and there's no firm betwixt (no hateration intended toward match.com or shaadi.com).
Supplier Power: High
So, here's what I can't fit into a Wharton framework:
# of Buyers < # of Suppliers, yet Suppliers have more power?
Women are scarce and differentiated at Wharton, yet we cannot command premium status and, in fact, are actually relegated to commodity status.
Actually, the progressive/feminist sector has a framework that explains this apparent paradox, but if I discussed it - it involves deep-seated insecurities about the role of women and power in our society - I'd either put people to sleep or piss 'em off.
Since I don't have time to ignore angry emails this week, I'm going to move on...
Buyer Power: Low
Women in grad school = marginal buying power...except at Taco Bell.
Between no buyer volume opportunities and extreme price sensitivity, bargaining leverage vanishes.
Hmmm...product differentiation, brand identity and limited quantity (yes, women do compete on Cournot) don't appear to work...so that leaves threat of backward integration & buyer information, which don't really work so well in dating…Wharton Women must source competitive advantage elsewhere...
Barriers to Entry: Medium
High GMAT scores, college GPA qualified by Latin, the ability to position (or what politicos call "spin") prior work experience as being on a significant leadership track are the standard Barriers to Entry for Wharton Men.
Threat of Substitutes: Low
In general, the emotional switching costs for women are high and for some reason, female buyers are not inclined to substitute. So, Wharton men, despite their surfeit, face virtually no threats of replacement.
Another contributing factor is that elite Ivy League schools such as Penn see no value in initiating joint ventures with firefighting schools. Or training rotations with hotels in Pushkar, India.
And, oddly, all these are poor substitutes within a context absent of a "Men of Wharton" calendar in production...
Competition: Low
What was it about that no firefighting school or Pushkar hotel exchanges? To reiterate: Wharton dudes face competition only when women seek out diverse and high-value channels, which rarely happens because again, no firefighting schools etc...you get the idea.
So, Wharton women wishing to exit the dating industry struggle because there aren't other high-value channels available.
Wharton women aren't fans of harvesting - of course, don't ask anyone in Siggelkow's 1:30pm class what "harvest" means because apparently we don't even understand Beta or Amortize (what's a fixed cost again? I recall Prof Ittner telling us it could be variable…but maybe I just don't want to commit?)
Complements: Medium
So, how does this brand-spanking new force fit into Wharton's robust dating scene?
I posit the Wingman theory.
Particularly, when the Wingman is of the opposite sex. Female Wingmen, for their male Non-Sexual Crush, have a competitive advantage over their male Wingmen counterparts that can't be quantified...even at Wharton.
As do Male Wingmen. Essentially, employing Wingmen helps realize previously untapped synergies for all (let's all join hands with Mike Porter and hum kum ba ya).
Given this market analysis, which strategy should each group pursue?
Strategy for Women:
Go outside Wharton; high-value channels include: Byblos, Smokey Joe's and WIVP.
Strategy for Men:
Go for Wharton Women; they are hugely undervalued asset.
But, remember: Entry strategies that involve using Outlook Appointments for dates are too low-beta. Signal better. Heck, even a butterfly spread beats Outlook.
And my personal strategy? Search for the seventh force…
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