https://steemitimages.com/DQmdaU1w8gmo7N4R6ogxjwn2WZULmvZRwpiLXS5ukodHssW/Challenge_THUMB6.jpg Source

Dear steemians on this occasion I have the pleasure to address you through a content related to the implementation of Game Theory, already explained in several publications by the friend @spectrumecons, whom I thank for giving me the opportunity to put into practice these concepts of economics to the situation raised in Challenge #6.

I particularly began this challenge by making a table where I placed the 4 available bakeries and their main characteristics, then I decided to apply the green color to the points that represent an advantage, the yellow color to the points of medium attention and the red color to the weaknesses that presented these establishments.

https://steemitimages.com/DQmckHxGN46PwdgEoSyQshumiaxGjPj7BLtaGN8FcSZy3bc/1.jpg

Based on what was expressed in this table, several strategies were analyzed, and the following one was chosen:

***General Strategy:***

Thompsons cooperates with Yummy Yum Yum Yum Yum and Draxton cake's and competes with Best Buy.

https://steemitimages.com/DQmXF3VsQsTE3yqoy1wNwmg8orksgRGMQ5htRw4PyJZ5UBS/2.jpg Source

The above strategy will be specifically handled as follows:

***Competition Strategy:***

Thompsons starts by buying the same technology that Best Buy has in order to compete with it, this decision is made because Thompsons has a certain advantage because it is positioned in the market and already has a wide range of customers and therefore has a greater amount of revenue, thus minimizing the threat posed by Best Buy as it could customize the products requested by customers and achieve greater production, additionally has a wide range of products compared to the medium range that Best Buy offers.

https://steemitimages.com/DQmUiivqNSJxyHN6YYeW9zF1tQD9gg4JPETc9Cxuv3EFhcb/competencia.jpg Source

***Cooperation Strategy:***

Thompsons offers Yum Yum Yum Yum Yum and Draxton cake's bulk supply of ingredients at cost price so that the products offered by both bakeries can reduce costs by offering the same prices as it does, on the condition that they cannot replicate their products, so Yum Yum Yum Yum and Draxton cake's can only offer their customers exclusive products.

https://steemitimages.com/DQmVKERyYa4DBSSPtBX3nd6rPt8UW9rdTDKo1aESwusa8Mj/cooperaci%C3%B3n.jpg Source

In short, the general strategy is based on maximizing the advantages offered by cooperating bakeries and minimizing the weaknesses they present, in the case of Thompsons there are many advantages such as the great variety of products to offer, low prices, excellent income and high quality, but also have weaknesses such as low technology and the ease of replicating their products, these weaknesses would be addressed by purchasing technology similar to Best Buy and additionally prohibiting replication of their products in exchange for supplying bulk ingredients to Yummy Yum Yum Yum and Draxton cake's.

As for Yummy Yum Yum Yum Yum, has some advantages such as high quality products and difficult to replicate and weaknesses such as high costs and loss of customers, so through this strategy could minimize the costs of their products and bring them to the price that handles Thompsons, due to the supply of bulk ingredients, thus avoiding the loss of customers related to costs, on the condition of only selling exclusive products, which currently represent 20% of the products offered, however focus on expanding the range of products offered with the quality that characterizes them.

Draxton cake's has some advantages such as being the first bakery in the city, loyal customers, 80% of its products are exclusive and disadvantages such as high costs, some products are easy to replicate and do not have new customers, so this strategy would benefit from lower costs in order to incorporate new customers based only on the sale of their exclusive products, which previously represented 80% of the products offered, thus rewarding the loyalty of their customers.

Best Buy also has different advantages such as the technology already acquired, bulk product acquisition, low prices, unique range of products that can only be replicated in case of obtaining the same technology and increasing revenues and disadvantages as small customers, short time in the market and smaller size than Thompsons, in this scenario would have to focus on enhancing the generation of exclusive products because Thompsons would have the same technology.

At the end of the customer preference would be based on the quality of the products offered to the public and the proven ingenuity of the exclusive products, this strategy will be maintained in the long term provided that the conditions are the same.

As for the arrival of Best Buy in my opinion is bad for some and good for others, I explain why, before the arrival of this, Thompsons covered almost all the demand of the existing market and now has to invest in technology to maintain that status because Best Buy the threat, For Yummy Yum Yum Yum Yum Yum and Draxton cake's, on the other hand, represents an opportunity to increase their profits and stay in business, taking into consideration the implementation of the strategy already proposed, but in the end it would represent a general good for customers as they would obtain excellent quality products at low prices.

I hope you were able to achieve the objective of this contest…
Greetings…

@ojmg