Complements as a sixth force (Brandenburger and Nalebuff)

Complementors are organisations whose products or services increase the value of another company’s offer. They are often proposed as a sixth influence alongside Porter’s five forces because their availability, quality and bargaining position can materially change demand and profitability.

When to use it

Use the extension when complements are a major driver of demand, continuity or profitability. Airlines depend on airports and air-traffic systems; mining companies may own roads, rail links or transport operators because the route from mine to port is essential to the economics of the product.

Origins

Adam Brandenburger and Barry Nalebuff translated ideas from game theory into business strategy and developed the role of the complementor in Co-opetition. Their value net placed complementors beside customers, suppliers and competitors: a player is a complementor when customers value your product more in the presence of its product. Later strategy discussions positioned complements as a possible sixth force alongside Michael Porter’s framework. Porter acknowledged their importance but argued that their economic effect can usually be analysed through the original forces.

What it is

The central question is: Do complements materially alter demand or profitability in this industry? A complement can enlarge the total value available while still capturing a disproportionate share of it. Analysis must therefore consider both value creation and bargaining over value capture.

Treat complements as a sixth force only when separating them reveals an important mechanism that the five-force analysis would otherwise obscure.