The game theory application to strategic decision-making: A Russian company case study
Importance In their strategic decision-making, Russian companies have opted for the game theory more often for the recent years. However, there are few relevant researches to determine whether they use an efficient option. This research becomes important as Russian companies get more and more interested in the game theory to take their strategic decisions, considering growing competition, risk and uncertainty in the market, thus giving grounds to believe that decisions, if taken on a mathematical basis, will be effective and optimal. Objectives The research studies whether it is effective for Svyaznoy Company to resort to the game theory in order to set an optimal price and how many smart phones of two types they should purchase for 2016. Methods We applied mathematical and marketing methods of research. Results We computed the precise price and volume of purchases, and determined an effective and practicable method of using the game theory. Conclusions and Relevance The game theory would be reasonable to make managerial decisions, since it encompasses, on the one hand, multiple factors of the market economy, and facilitates making mathematical computations and getting exact results. The method may be used by various industrial specialists to advance their strategic planning practices.