Zero-sum Game

Description of Zero-sum Game. Explanation.

Definition Zero-sum Game. Description.

A Zero-sum Game is an economic term that refers to the situation where the benefits / profits of some activity equal the disadvantages / losses.

Typically, management activities and strategy formulation are aimed at identifying and pursuing positive-sum games. They are non-zero-sum activities. Also, the primary financial objective of many companies is to maximize the wealth of its shareholders. And according to Michael Porter, a competitive strategy takes offensive or defensive action to create a defendable position in an industry, in order to cope successfully with competitive forces and generate a superior Return on Investment.

Compare with: Game Theory  |  Economic Value Added  |  Competitive Advantage

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End of description Zero-sum Game. An explanation.