Eric Siu explains why treating business as an infinite game matters more than winning short-term. He uses Nordstrom's no-questions-asked refund policy as an example of investing in customer relationships and reputation that keep the game going indefinitely.
An infinite game is like playing catch with your nephew. You don't try to win catch. The purpose of a game of catch is to play more catch, to engage with people and get closer. So most of the things that we are doing in business are actually an infinite game. So when Nordstrom says, we're going to give you a refund on that snow tire even though we don't sell snow tires, they're not doing it because they're a charity. They're not doing it. They're doing it because they're playing an infinite game. They're saying, this investment we are making, not just in our relationship with the guy who bought the tires, But with the employee who works at the Thai counter, with the staff in Anchorage, Alaska, with the story where it'll spread, that move in the game will help us play the game even better tomorrow.
