When elephants fight the frogs get trampled so goes
Eastern wisdom. What happens when the same elephants do not fight directly but
adopt bypass business strategy and attack each other indirectly? Same thing the
small businesses as frogs get crushed once again. By and large Bypass attack is
reserved for the fittest only.
Big businesses continue their cold war this time
attacking opponents indirectly to surpass him or overthrow him similar to
regime change practised by America. The attacking firm goes to the jugular vein
of the defender in such manner that not only he loses big chunk of the market
share but piles up huge cost in terms of resources employed in every
conceivable market for defence.
This happened in 1971 when Colgate abandoned
domestic market and started adding new products to its line in Europe and
elsewhere to compete with Proctor & Gamble globally. This is apt business
strategy in skipping a potent enemy in his fortified terrace and focusing on
the outlying areas where he is weak, under-represented or without any presence
at all.
Basic approaches in executing bypass business strategy
are three-fold:
Diversifying
into new perhaps unrelated products before the competitor does is the primary
bold move. Pepsi cola used bypass effectively when it unveiled mineral water “Aquafina”
long before Coca Cola came with a competitor brand “Dasani” which later fell
foul with EU authorities as it said to contain borate exceeding the maximum
allowable limit with potential health hazard.
Shifting the
battle ground to newer territories where the attacking firm has
favourable terrain or has familiar backyard. Here the bold move must be humongous
and implemented with such a speed and ruthlessness that defending firm needs
lot of time to respond to the situation. The Colgate move mentioned above
qualifies under this segment.
Leapfrogging on
technology is the third and perhaps the mightiest of all the
moves that can happen under bypass business strategy. Employing highly improved R&D and new
generation technology a firm can make clean sweep of competitor’s customer
base. This is what iPod did to Sony Walkman. But there are two essential
conditions that the attacking firm must have to follow through. One is that its
techno ability must not only be superior to what exists in the particular
market but also gets updated in game changing methods periodically. Secondly
the firm lust be nimble enough to translate newly acquire customer base to
brand acceptance & loyalty.
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business
Strategist
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