The use of market principles to win the war

The use of market principles to win the war


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In fact, many people have used military language. You've heard of between McDonald's and Burger King's "hamburger war", also heard between Coca-Cola and Pepsi "cola wars." Each company will from time to time referred to "defend the market share", "to defense", "blocking the opponent" and other words.
    
Many companies have very successfully claimed its market share from competitors. Without exception, these companies are beginning to prepare plans, may be competitors on their actions carried out a thorough analysis, and then work out how to approach one step ahead of the competition.

    Difficult to imagine a general in the preparation of a pre-battle will not get as much as possible about the enemy's strategy and tactical intelligence. At West Point and the rest of the world of education in military academies, students doing the so-called "war assessment" is often the enemy as a starting point. The enemy's strengths and weaknesses that? How the enemy forces composed of? How many enemy artillery support? What is the overall strategy of the enemy and so on.

    The famous Chinese strategist Sun Tzu in "The Art of War" had this to say: "Know thyself, know yourself; I do not know Peter and friend, one win and one loss; do not know he is not friends, losing every battle."

    Competitive strategy in a similar manner, but companies usually do not do this. Many companies prefer to concentrate on their strengths, their own plans and goals, their level of service, its own sales force, and so on. If you think that the business field with no competitors, then certainly in this area can not persist long.

Create a competitive advantage

    Company's competitive situation should be keen observation. Importantly, to discover what makes the success of competitors, and then develop a strategy to make a different way the same thing, or will this do things better.

    First and foremost, is the most important lesson is that if you have a "high-level weapons and tactical systems" (SWAT), whether you use any strategy will be more chance of success, because they have such a system will be able to overwhelm the enemy all the other advantages .

    The formation of a competitive SWAT are three ways: cost leadership, distinctive, concentrated firepower. If the company is working with a stronger competitor with a strong defense or fighting ability of opponents, select one of the most crucial of ways.

    Choose low-cost way of leading the company to succeed, not just by cutting costs, but also on the adjustment of the organizational structure of the company without paying those more traditional competitors that should of course be that cost. This will be the cost savings under the profit to their customers, thus greatly reducing the resistance to the customer, while still maintaining high profits.

    For example, Dell Computer (Dell) through the elimination of all major computer manufacturers are considered essential in the middle of vendors, direct sales to customers, eliminating the intermediary. In this way, and way-to-order computer, Dell not only eliminate the middlemen to earn a profit, but also to get rid of a huge inventory of the industrial sector dragged down the epidemic, so can a huge discount to market their products.

    The second way "different", that need to be different with its competitors, give customers value-added, and persistent. VISION EXPRESS is a successful example. Its unique quick and convenient to the spectacles to the rapid development of the market, providing revolutionary services, to determine the degree of preparation of glasses after one hour you can get the glasses. Snap-On Tools in the United States with great success, which specializes in professional auto mechanic to provide high quality tools, and then shipped by truck directly to a weekly delivery to them, and can be very loose credit conditions.

    Third way is to "focus strategy." Company specializing in a particular market area, a large market than competitors to better meet customer needs or cheaper. For example, Jan Carlzon Scandinavian companies in the business aviation services to focus on business travelers, the company's services around their needs, rather than other types of passengers.

The number of winning

    In many military campaigns, both sides of the armed forces do not have SWAT, because one party to introduce new weapons and tactics, the other will quickly follow suit, or because of the lack of creativity when the military commander or technological innovation to create a SWAT.

    In these circumstances, victory often depends on the owner of the following two assets: a powerful force and space ratio. All the great theorists of military strategy that numerical advantage is essential. 19th-century Austrian officer, known as the father of Western military strategic thinking and even think of Carl von Clausewitz, this is the most important factor in the decision of victory or defeat. He wrote: "the advantage of numbers are at the tactical and strategic victory in the most fundamental principles."

    The number itself is not only essential, but will concentrate to occupy a specific region, resulting in the advantages of military space ratio, which is also very critical. Many can win with fewer troops, it is because their commanders concentrated their forces, although the overall figure represents a disadvantage, but in the theater of a number of important areas has accounted for an advantage.

Therefore, much of the content strategy is to force the enemy at a disadvantage in the number of time and place to fight, through the power concentrated in general on the battlefield tactics, at one point in the field to obtain numerical superiority.
    The same is true in business. Equal in all the circumstances, the biggest company or brand can win. There are several reasons: First, the vast majority of customers believe that the greatest natural is the best big company itself means high quality and high quality.

    Second, large companies often greater than the deeper pockets of small companies. Though they have more resources does not necessarily mean willingness to take advantage of these resources, but does suggest that, as long as the big companies are willing, it will be able to have enough ammunition to use.

    The third reason is the "law of increasing returns." In some industries, large scale could not lead to block the growth of large companies will become even greater. In the software industry that the most obvious. The best example is Microsoft's Windows operating system, which has become an industry standard.

Good defense

    The third lesson is that war can do defense forces will win. Military sector in the world to accept the attacking forces are usually not available views SWAT, attack troops need to have three to one advantage in order to offset the advantage of defense, naturally, to obtain.

    If the two sides of the equipment and received training similar to the attacking force is no greater number of advantages, it can only make ourselves into each other again and again the defense being well-prepared, can not win until he was exhausted. There are three reasons: the defender usually have already selected the battlefield. Defender's position strengthened by fortifications. Defense parties are usually as long as the concentration of fire, and attacking side need to move and fire, so the defender firing faster, better.

    Similarly, in their respective markets based on the good companies and brands more difficult to be expelled. amazon.com is one such company. Its success lies in its mode of operation and methods of its more traditional competitors. amazon.com inventory includes only a limited number of best-selling book, most of the book there are orders from wholesalers purchase, then packed and sent to the customer, which is completely different from non-online booksellers. In this way, you do not need to pay expensive storage fees, no brick cement brick store, saving expensive Pu rental costs.

    Competition and by the war to make a business analogy, managers can concentrate on one goal: defeating his opponent before the opponent down. Many companies do not want to see it this way, do not want to see this cruel business competition. However, people are forced into bankruptcy or mergers and acquisitions of companies, a large part if the original use of such a strategy will be a great benefit. As an officer in Napoleon, Antoine-Henri Jomini, Switzerland said: "Indeed, the theory can not teach people for every possible situation accurately make a deal, but certainly, they will point out that all should be avoided wrong ... because if these rules lies in the capable hands of the generals, almost successful way. "