3e2a602 art of corporate warfare-ii-2011-13(s-2).ppt

MBA Class of 2014 (2012-14)/ Semester-II

Speed And Preparation: Moving Swiftly To Overcome Your Competitors

England

Maginot LineFrance

Main Attack

ParachuteDrops

Germany

FeintHolland

Luxemburg

Belgium

The German Strategy in France: 1940

• Speed in execution is essential for a number of reasons; speed is a substitute for resources, it shocks and surprises your competitors, it is critical to exploiting weaknesses and opportunities, and it allows you to build momentum. (Bharat Forge)

Substitute for Resources

Exploit OpportunitiesAnd Weaknesses

Provide Shock and Surprise

Speed

Build Momentum



• Reinforce success, starve failure. (GM’s Saturn; Bajaj)

• Launch an attack only if in a position to reinforce it, in case successful. If unprepared to do so, you have forfeited surprise, lost an opportunity for taking market share, wasted resources, and given your competitor a chance to learn your strategy and

tactics. (Pepsi-Diet Pepsi-Crystal Pepsi).


IMPORTANT CYCLE TIMES

Information/Decision/ActionDevelopmentManufacturingDistributionCustomer Responsiveness

MEANS OF REDUCING CYCLE TIMES

• Speed intelligence processing• Put discipline in decision-making• Communicate strategic actions • Design for flexibility• Wargame your strategy• Foster organisational learning

• Hence, what is essential in war is victory, not prolonged operations. (Arcelor Mittal;Jaguaer)


• Reduce product development, manufacturing, and distribution cycle times. – Tighter links between R&D and manufacturing.– Reduce manufacturing cycle times.

• Reduce distribution time by improving your order process and designing the process for fast customer fulfillment.

• Improving customer satisfaction cycle time.

• Preparation.

• War gaming and scenario planning.

• The attack / defend / attack cycle.

• Organisational learning.

Counterpunch A

Counterpunch B

Mammoth retaliates with an ad campaign combined with rebates, targeted at your customers. Time to implement – 3 months.Probability = 20%

STRATEGIC MOVEYou can create a new distributionChannel that reaches a small (5%) but lucrative segment of Mammoth’sBusiness.

Mammoth attempts to replicate the new Channel to better serve their customers.Time to implement is 1 year. Probability = 40%

Counterpunch E:You use the 1 year lead time to repackage your product so it can be distributed more cost effectively.

Counterpunch F:You build another channel that targets TinyCompany

Mammoth responds with a customer loyalty campaign, trading services for continued purchases. Time to implement is 6 months.Probability = 20%

Counter punch C:You start now on building your own customer loyalty program, so it is ready when Mammoth introduces theirs.

Counterpunch D:You combine your product with services and “value price”

Mammoth’s response is something totally unexpected

Probability = 10%

Mammoth takes no action at this time.Probability = 10%

Situation: Your company has 10% market share, which is growing quickly due to rapid innovations. Your competitor, Mammoth Company, has 30% share, which has been flat for five years.

Shape Your Opponent:Employing Strategy To Master The Competition

• Adversary to conform to your strategy, rules, will. (GM vs. Ford)

• Your strategy must attack:

– Resources of your competitor.– The minds, thought processes, and wills of its

executive team.

• Employ both the direct and indirect force.

• Gain and hold strategic positions in the marketplace, using technology, key buyers, and distribution channels to deny competitors access to key markets. (FedEx).


• Implement strategic moves and send market signals that bait your competition into committing strategic mistakes:

─ leading them to enter markets that will prove unprofitable; or

─ directing them away from markets you desire.

• Understanding the nature of alliances. How they are formed and maintained, and how to sever those of your competitor.

• Direct and indirect forces. Goal of combining them is to:

─ coordinate your forces most effectively; and─deliver a series of stunning psychological blows from

which your competitor will not recover.


– For instance, if you believe your competitor expects your attack in the Australian market in one product category, you might follow thorough with such a movement. However, you do so only to mask a more substantial blow in a more important product category in Germany.

Hungarians

South WesternFront Don

FrontStalingrad

StalingradFront

Italians Rumanians 6th Army

4th Panzer

Rumanians

16th Mot(After E. Manstein)

Soviet counterattack at Stalingrad


• Holding strategic positions. (Holding patents: Instant Photography Polaroid vs. Kodak; Inkjet printers HP vs. Japanese).

• There are several types of strategic high ground to hold:– Technology chokepoints that ensure competitive advantage.– Positions on industry boards and organisations that enable you to

influence the future direction of the industry. – Strongholds created by attracting key decision-makers in the customer’s

buying process. (Via FedEx, a free magazine).

• Leaving a way out.

• Alliances.– Once you have created an alliance, you must make skillful use of your

allies. (Reliance).– Although one must make allies to survive and prosper, do not chose poor

allies just to have allies. A bad alliance is worse than none at all.

• When he is united, divide him.


• Avoid being shaped. (GM vs. Ford)).

– Hence, avoid two things: • using the same tactics twice in succession; and• telling people how you accomplished your success.

– When victory is won, do not repeat the same tactics but respond to circumstances in an infinite variety of ways.

– Be obtuse and unclear when people ask you for your methods. No one can then discern your strategy for winning.

- Driving for Multi-Industry Global Leadership. Who?

Character Based Leadership:Providing Effective Leadership in Turbulent Times

• As a leader:

– Build your character, not just your image.– Lead with actions, not just words.– Share employee’s trials, not just their

triumphs.– Motivate emotionally, not just materially.– Assign clearly defined missions to all,

avoiding mission overlap and confusion.– Make your strategy drive your organisation,

not the reverse.


• Build your character, not just your image: – Wisdom. Integrity. Balance.– Courage. Courage. Courage.– Sincerity. Loyalty.– Humanity. Knowledge.– Discipline.

• Unacceptable character flaws: – Indecision.– Deceit.– Cowardice.– Selfishness.

• Other weaknesses (recklessness; very quick tempered; anxious; over compassionate).

• Lead with actions, not just words (set example ). Select those who enjoy providing service to customers and with a sense of humour.

• Share employees’ trials not just their triumphs. (Employees don’t follow leaders they don’t trust. Money isn’t everything).

• Motivate emotionally, not just materially.


• Assign clearly defined missions; do not tolerate confusion: – Decide on a strategy and assign missions. Everyone must

know the high-level game plan and where they fit in. This requires a communications plan.

– Do not assign vague or overlapping missions to organisations and individuals.

• Make your strategy drive your organisation:– Proper staffing and organization of your staff. The

management team for your organisation must be composed of the best people available.

• Moral influence:– Select people who can “resolve difficulties before they

arise” and “exploit the situation”.

– Work on your character.

3e2a602 art of corporate warfare-ii-2011-13(s-2).ppt

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