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Lobbying

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Goal: Shape government perception to match user needs.

Strategy: Indirect pressure. Use users as leverage to get favourable treatment. You lobby on behalf of users, or get users to lobby for you.

Example: Open-source communities lobbying for open standards. The argument is "this benefits citizens/customers, so regulate in favour of it."

Key theme: Influence via legitimacy. You earn a government position by aligning with what's seen as right or popular.

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Lobbying is the action of influencing government. It is frequently the necessary precursor to enacting Defensive Regulation. Successful lobbying can create rules that directly contribute to the broader goal of Limitation of Competition. However, lobbying can also pursue other goals, such as subsidies, favourable contracts, seeking regulatory backing or mandes for a technical standard (Standards Game) and isn't always defensive or aimed at limiting competition directly.

Lobbying / Counterplay​

Definition & Summary: Lobbying refers to influencing government or regulatory bodies to obtain favorable rules, subsidies, or decisions . In Wardley Mapping context, it's a play where you shape the playing field via policy rather than direct market action. Counterplay is often mentioned alongside lobbying, implying actions to counter a competitor's lobbying.

Detailed Explanation: The origins are as old as industry and government. Purpose: achieve through law or regulation what might be hard to achieve in open competition. Key principles include aligning your ask with a public interest narrative (jobs, security, etc.) and leveraging connections or public pressure. For example, seeking standards that favor your approach, or restrictions that your competitors can't easily meet. Counterplay might involve lobbying against a competitor's initiative or regulation (hence "counter"). In effect, this strategy goes beyond the market's direct forces and uses climate (regulatory environment) to your advantage.

Real-World Examples:

  • Historical: Traditional taxi companies worldwide lobbied city governments to impose regulations on ride-sharing startups (like Uber/Lyft). They pushed narratives about safety and fairness, managing to get certain cities to enforce licensing rules or caps -- a defensive lobbying strategy to raise barriers that Uber had to fight city by city.

  • Historical: Big tech firms form coalitions to lobby for strict patent enforcement or strong copyright laws (e.g., the entertainment industry and DRM laws). These regulations make it harder for smaller players or open-source solutions to operate freely, thus protecting incumbents' revenue .

  • Hypothetical: A renewable energy company engages in counter-lobbying when a utility tries to pass a law penalizing home solar users. The renewable firm organizes public campaigns and meets with lawmakers to defeat that bill -- countering a competitor's lobbying (the competitor being the fossil-fuel utility). Conversely, the same renewable firm might lobby for higher renewable portfolio standards, forcing utilities to buy more green energy -- a regulation that directly benefits it.

When to Use / When to Avoid:

  • Use when: The regulatory environment significantly impacts your industry economics or when you have an asymmetry you can exploit (e.g., you can meet a regulation that others can't). It's particularly potent for defensive plays (limiting competition via law) or enabling plays (getting government funding or support for a market). Use lobbying if the ROI of influencing policy is higher than competing head-on.

  • Avoid when: You lack influence or credibility -- failed lobbying can waste resources and signal weakness. Also avoid if the public sentiment or political winds are against your position; pushing an unpopular stance can backfire into negative PR. For new entrants, lobbying is often not an option (they usually face lobbying by incumbents).

Common Pitfalls:

  • Reputation risk: Heavy-handed lobbying can brand you as anti-competitive or not customer-friendly (e.g., companies lobbying against net neutrality were seen negatively by many customers).

  • Regulatory unpredictability: Politicians and laws change. A strategy reliant on a specific regulation may crumble if the regulation is repealed or if enforcement changes.

  • Dependency: If your success becomes too tied to subsidies or protection, you might under-invest in innovation, leaving you vulnerable if the protection is removed.

Related Strategies: Defensive Regulation (essentially lobbying for regulations that protect you -- directly the same concept) , Limitation of Competition (the goal of much lobbying) , Industrial Policy (where you align with government investment strategies for mutual benefit).

Further Reading & References:

  • Wardley, S. -- On "Limitation of Competition" via regulation . Describes using government means to erect barriers for competitors (which is achieved through lobbying).

  • Example case: Uber vs. Taxi Lobby -- Various news articles document how taxi associations lobbied for laws against ride-sharing, illustrating lobbying as a competitive strategy (e.g., city council records, 2014--2016).

  • Tech Lobbying Reports -- (For counterplay) Reports on how tech industries form alliances to either push or counter regulations (e.g., the Internet Association's work) -- showing both sides of lobbying battles.