002 ❊ the game theory behind powerhouse brands
I've often pondered about what sets brands like Apple apart.
The more I delve into it, the more I'm convinced of their leadership's masterful application of Game Theory. I believe it is this understanding that enables them to rally thousands of individuals to work harmoniously towards a singular, grand vision.
Intriguing, isn't it? While these titans stride forward, most companies around us stumble to create that magic cohesion. This very disparity underscores the vast gulf between these giants and the broader market.
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Here's what I think they are doing, among other things :
→ Refining processes to streamline all operations so that interdisciplinary teams can navigate with minimal guesswork.
This clear path not only enhances efficiency but also sidesteps the pitfalls of the prisoner's dilemma — a situation where individuals, despite better outcomes if cooperating, often choose self-interest, leading to a suboptimal result for all.
→ By designing their incentives with intent & precision, these companies ensure the whole organisation hums in harmony, like a symphony where every note has its place.
Making it a coordination game — a situation where all teams make decisions aimed at serving a shared organisation goal.
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Without these elements, companies risk sliding into a Nash equilibrium — where teams are trapped in a self-serving loop, to the detriment of the collective. A narrative I am eerily familiar with.
With such vast differences in product quality, one has to wonder about the silent nuances that differentiate the ordinary from the extraordinary.
Makes me think.
These musings happen to come out of a video I stumbled upon on Youtube. Outside of it, I must admit I do not possess any reliable knowledge of Game Theory at this time.
I am fascinated enough to explore though.
Help me fill gaps in my understanding. I’ll be happy to learn more 🌼
Cheers.
In the meanwhile, here’s a pretty thing to look at. I caught a quiet moment around Agara lake on my evening walk yesterday. Quite a view 👇