Three or four years back when I was reading the book – Blog – Old path white clouds (Book – Old Path White Clouds), I started looking at businesses with a changed mindset. In India, there are small stalls on roadside. The stalls could be tea stall, paratha stall, idly dosa stall, Sandwich or others. What I observed was, at many places these stalls were near each other e.g. tea stall near the sandwich stall or the idly stall. This is so common that we overlook such arrangements of shops.

What is the reason of them being next to each other? The reason is roughly 50% of the buyer of sandwich would buy a cup of tea or the other way round some people buying tea would order for a paratha. These offerings are seemingly different for the stall owners, they are selling a refreshing drink or a breakfast however, from the point of view of a customer it is a wholesome offering – tea with paratha/sandwich.

Well the point I am trying to make with the example is one and the same. In terms of business Prof Mohan Sawhney (of Northwestern University) says ‘Metamarket’ and in Buddhism they called it interdependent co-arising.

Representation of porters five forces

In organized retail, there are two parties catering to the end customers. One the manufacturer and the other retailer. Here too, we would see the collaboration or the dependence of one on the other. If I relate the concept of interdependent co-arising further with the very basic management lessons – Porters Five Forces – we would observe few things. Earlier the manufacturers had power (suppliers power) and now the retailers are gaining power (buyers power), and this cat and mouse game would continue. This power would shift to the ultimate buyer – the customer – perhaps it will happen in the future.

How can the forces be balanced? Well, when we look in the basics we would learn. The idea in any game theory based dilemma (Prisoners dilemma) is that when each one starts co-operating everyone wins. That would apply in long term. Net net – we would have to be on the basics – the concept of interdependent co-arising.

Image source – http://www.smartcode.com/


KRD Pravin

Here I am supposed to write about myself. Professionally, I am quite serious and a workaholic; personally I am an individual who enjoys what he does and takes life as it comes. I am passionate about my work and actions and empathetically careful, attached and committed to them. All this makes me a fierce competitive professional and yet a compassionate soul, the Yin and the Yang together. Balancing is the art to be practiced using the middle path. From - http://business2buddha.com/about/

2 Comments

preti · May 8, 2011 at 3:53 pm

As always!!!!!!!!!!!!refreshingly……..simple ……..smart and keen observation and sweet.Thanks for ur writing!!!!!keep it up.

TarunKush · August 7, 2012 at 10:57 pm

Nice read indeed. Concept of mutual co-arising that you have mentioned here is similar to that of a mall. The cluster of such stalls would increase the number of footfalls for each of the stall and hence the sales as we know it! Moreover there is no rivalry (general observation) as all the members of cluster generally sell a unique product. Less competition and more sales is a good opportunity to increase revenue for each individual in the cluster. The prisoner’s dilemma will come into play when one member of the cluster starts selling some other member’s product so as to provide a combo pack like offer.

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