Five rules of engagement in business warfare

It may surprise my readers that there is something known as “Business Warfare”. Many consider business as of peaceful nature where transactions take place between buyers and sellers in orderly and harmonious fashion. Never the less, under the garb of peace, there is intense warfare going on behind the scenes.

This time the war is led by astute business strategists who following the military precedents, have set rules of engagement between two likely adversaries. In fact, business strategy dictates how the competition in the market is managed, how to conform to rules of engagement and what measures must be taken to chill down any out-blown conflicts between two competitors. Here are the five rules of engagement:

1. Equation of offensive: In military the rule is if there is an attack on military targets counter attack will be on military target only leaving the non-military targets unscathed. Similarly where a price war takes place the contestants limit the offensive only to the price and do not resort to non-price competition.

2. Equation of deterrence: As in military, equation of deterrence works as a balancing factor in business warfare. If one competitor embarks on offensive smearing or disparaging the product of the other competitor with the sole intention of demolishing market share then he positions himself in a glass house throwing stones. His opponent can play the victim role and is able to select from the bank of counter measures including advert blast, legal action or resort to the same idea of bringing disrepute to the initiator with much potency.

3.  Competition at acceptable level: Similar to the military concept of escalation ladder companies have to maintain business warfare to the extent it is ethical, legal and commensurate with the general level of competitiveness in a particular market. If anytime exchanges get out of control it is the duty of both opponents in business warfare to bring it back to the acceptable level. Often IT companies start with cut-throat competition in the beginning and level off climbing down the escalation ladder.

4. Control offensive:  This rule implies that business warfare must be played on a tit for tat basis and not to engage in all-out war with an opponent. Competitive postures of a company must conform to its business policy must reflect its business strategy. In military we have the concept known as limited offensive.

5. Charm offensive: Most companies accept this rule of chance offensive. In business strategy charm offensive is given pride of place because it does not bring any harm. Instead it garners goodwill amongst customers and competitors. When charm offensive fails to dislodge an opponent who is adamant, then the firm can play hard ball only with that opponent and not to extend it to the other market participants.

Cheers!

Muthu Ashraff

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist