The PARTS Model is separated into five individual sections that together assist in identifying strategies to succeed in a competitive

environment based around the Game theory. As cooperation generates profits for a business and competition forces the current value to be distributed between competitors the PARTS Model aims to maximise the profits of the situation. The sections of the model, Players, Added value, Rules, Tactics and Scope, each add a different aspect in identifying the best course of action (Nalebuff, Co-opetition, 1993).

Players
The first aspect of the PARTS model is the Players which is explained using The Value Net or Coopetition framework which is used to identify and analyse the multiple players within an industry and the relationships they share (Hubbard, 2011). As seen in figure one there are four major players identified in Value Net Customers, Suppliers, Competitors and Completmentors.

Figure 1 - Value Net

Competitors
A competitor is other companies that supply a similar product or substitutes to the product being sold. Competitors can be both on the customers aspect as well as the suppliers aspect. While generally seen as a negative for business competitors actually make the industry more diverse, credible and drive innovation and improvements (Nalebuff, What is Co-opetition, 1996).

Complementors
Complementors provide products and services that enhance the value of a companys product when purchased together. Again there is both customer as well as supplier aspects to complementors. Complementors can assist in increasing sales and attracting more beneficial suppliers (Hax, 2001).

Customers
Customers can be identified as the party which a customer markets and directs their product towards and in return money is exchanged from the customer to the company. A player in the framework is a complementor when the value of your product increases to the customer if used with the other players product. While if the value of your product decreases for the customer when they have the other players product they are a competitor (Nalebuff, What is Coopetition, 1996).

Suppliers
Suppliers are the party to provide resources to the company to develop products or assist in the delivering of services. In return the company pays the supplier money. On the supply side of the Value Net framework if it is more attractive for your supplier to deliver resources to you as well as the other player the other play is a complementor while if it is less favourable for the supplier to deliver resources to your company due to the other player they are a competitor (Hubbard, 2011). When identifying the Players in the PARTS model the first task is to organise each player into a category using the Value Net model. The company can then identify which improvements can be made to work the situation to their advantage for example if the company increases the number of suppliers the cost of raw materials may decrease. Furthermore it can be identified whether there are more opportunities for competition or complementation with current players or ways to decrease any current issues (Nalebuff, Co-opetition, 1993).

Added Value
The Added Value section of the PARTS model goes against conventional models of added value that concentrate on the value and capabilities of the organisation on its own and looks into the value of a company to the industry its in. The process of added value within the PARTS model is seen in figure two. Basically added value is the value of the industry containing the company minus the value of the industry without the company. The value of a company is measured from the other players point of view as well as the companys overall value within the industry (Hubbard, 2011).

Added Value

Value of the industry

With you

Value of the industry

Without you

Figure 2 - Added Value

Upon application of the PARTS Model Added Value is where the company can evaluate and take action to increase its added value. For example attempting to increase customer loyalty with loyalty programmes which in turn attempt to decrease the value of competitors (Hubbard, 2011). Or in a monopolist market a company could limit supply to make the value of their product increase by forcing an increase in demand.

An example of Added Value in place can be seen within the telecommunications industry. With budget providers breaking into the market it is likely that they are adding value by increasing competition which is valuable for consumers, creating more traffic on services which in turn need upgrading as well as selling more handsets and equipment and therefore adding value for suppliers. As a whole the budget providers increase the value of the market as a whole which offsets the decrease in value for the more expensive competitors (Nalebuff, What is Co-opetition, 1996). Although added value is a relatively simple concept it can be difficult to execute particularly with new competitors to an industry. While there may be existing statistics for some sectors others there may be very little data collated for other sectors making company value extremely difficult to evaluate.

Rules
Within all industries there are both written and unwritten rules that apply to the companies within the industry. The Rules section of the PARTS Model focuses on which rules are assisting the growth and success of the company and which rules are hindering the companys progress. While there are rules which cannot be or are very difficult to change or modified for various reasons such as government enforcement or contracts there are others which are able to be adjusted generally by innovative companies within the industry (Nalebuff, What is Co-opetition, 1996). By innovatively changing the rules of an industry a company is most likely changing the norms of the industry. By changing the standard way of practice a company is creating a point of difference with its competitors. An example of a rule that can assist a company is a clause within a supplier contract which the company insists with the supplier that they always have the best price available. This obviously benefits the company by ensuring they have the lowest possible supplier costs while the supplier is benefitted by having a consistent and reliable customer.

Tactics
The tactics a company uses are the actions used to form the actions and strategies that support business functions. Effectively using business tactics means that the company can shape the perceptions of competitors as well as drive the company towards the desired outcome. Questions that can be asked in regards to forming strong business tactics are how can we influence the perceptions of other players? As well as is it best for the business to be transparent or opaque? (Kock, 2000) A common technique used for tactical purposes is Signalling which involves players indicating how they perceive the competitive situation and suggest the likely action they will proceed with. The signalling technique can be used to gauge the reaction of other players whether the actions are true or bluffs are a decisions made by the company (Hubbard, 2011). Examples of signalling tactics are Announcing a course of action and communicating a view with other players.

Scope
The final factor of the PARTS model is the scope of the game or the definition of the game for each player. The scope of the game could be geographical, relate to customer types or markets. Particularly with markets it is easy for companies to link markets to broaden their scope and increase the value add of the company (Hubbard, 2011).

Works Cited
Hax, A. C. (2001). The Delta Project: Discovering New Sources of Profitability in a Networked Economy. NewYork: Palgrave. Hubbard, G. (2011). A general Multi-competitor framework of business relationaships: the PARTS model. In G. Hubbard, Strategic Management (pp. 222-229). French Forest: Pearson Australia. Kock, M. B. (2000, September). Coopetition in business networks: To cooperate and compete simultaneously. Industrial Marketing Management, 29(5), 411-426. Nalebuff, A. M. (1993). Co-opetition. New York: DoubleDay. Nalebuff, A. M. (1996). What is Co-opetition. Retrieved from Co-opetition Interactive : http://mayet.som.yale.edu/coopetition/ Neumann, O. M. (1980). Theory of Games and Economic Behavior. Princeton: Princeton University Press.