How to apply staggered defence in business warfare?

Defensive business strategy is an essential for a market leader in a particular industry who could mount effective defence in the event of business warfare imposed upon it by a combating contestant. To wear down the opponent and to economise on resources it must opt for staggered defence in three layers.

Perimeter one: in military doctrine this layer is the outermost amongst the three, looking beyond borders or territorial waters. Functioning as deterrence along with defence it uses high powered radars to identify large bodies such as aircraft & missiles. Here the radars could peer deep into space as such the altitude of flying does not matter. Never the less it does not blip on smaller ones such as low flying crafts or unmanned aerial vehicles (UAV). As a result the latter could creep thru.

Perimeter two: As the middle layer defence this structure looks at the border or coastal area and lock on any items up to the size of a motor car. Most if not all the low flying aircrafts or UAVs would be locked on and brought down with high degree of precision. The negatives are altitude restriction and lack of clarity in distinguishing between flying birds and flying machines.

Perimeter three: This defence layer is located deep inside the country/territory and could identify any object to the size of tennis ball. As the radar could detect anything and everything over the sky all flying or gliding machines would be shot down with 100% precision and efficiency.

Applying staggered defence in business warfare is the job of the business strategist who while formulating business strategy gives primacy to this doctrine. A classic example was cited by William C Finnie when Coca Cola entered the wine industry in 1977 taking E J Gallo Winery on a frontal war. Even though Coca Cola was much superior in terms of financial and marketing strength, E J Gallo beat the cola giant by using well-crafted defensive business strategy staggered on three levels:

a) Superior defensive position in perimeter one

b) Sound business strategy that combines both defence and offence in one go in the second perimeter

c) Aggressiveness, a unique trait of Gallo Winery noted and toasted in the wine industry, anchored on the innermost perimeter.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist