“Doing Nothing” Business strategy

Many of you would be surprised to read the title of this blog: “Doing nothing”.You might ask me: Can this be called a business strategy at all? Well there is time tested strategy of doing nothing in the annals of history.

Great warriors sometimes pass on doing nothing. Take the case of Genghis Khan who saw the Great Statue of the “Bamiyan Buddha” in Afghanistan. After a brief moment of reflection the Great Khan has been reported to have said: “Let’s leave this to history”. Several centuries later the Taliban Terrorists flattened it disregarding the advice of the Khan.

History apart, military affairs is sometimes besotted with incidents when doing the opposite of it can also be equated as doing nothing when someone deliberately chooses to ignore it. Lord Horace Nelson did that during the Battle of Copenhagen in 1801, when the signal 'discontinue the action' was hoisted he ignored it and continued firing. Nelson later on declared that he could not see the signal because he is partially blind. The British succeeded and later Lord Nelson was promoted as commander in chief of the British fleet.

Sun Tzu adds more colour when he values a commander who follows doing nothing strategy thus: “He will win who knows when to fight and when not to fight”.

So doing nothing can be applied in different types of circumstances. Personal life military life and in business strategy. Here is a laundry list:

1. There is no need to demonstrate that “You are in action”

2. Where holding the current position is better option

3. When perceiving that no change in status- quo would be forthcoming even if you intervene

4. Doing anything can backfire or be counter productive

5. Circumstances do not warrant accommodating another player in the contest

6. Might as well allow two or three opponents in the ring continue to fight and tire and turn out ultimately as spent forces

7. Keep your powder dry: Be calm and be ready for future action that requires your intervention to set things right

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

 

 

Business warfare, dealing with two enemies

When you have two enemies gunning for you at one and the same time it is definitely a moment for despair. But take heart there is some light at the end of the tunnel. You can switch one enemy for another and play havoc at their respective operational camps. Here I spill the beans:

First and foremost ascertain whether both of your opponents in the market place share the same level of hatred towards your firm. Perception matters a lot for you and for your opponents. There could be a chance one of them might not think or perceive you in the same vein the other does. Here are two rules of thumb:

First rule of thumb:  Corner the one who appears to be weak. Begin a counter marketing blitz especially focused on his mainstay in terms of product or particular technology. Watch the response of the other guy. If he fails to follow through and meet you eye to eye or simply look the other way about you do not waste your time & effort in continuing the offensive.

Signal the cornered opponent that you are ready to talk peace terms where both stand to benefit. Examples of suggested compromises include but not limited to of sharing market space, joint development of the present market segment and identifying new segment where both of you can put heads together to gain mutually beneficial results.

Second rule of thumb: Focus on the Biggy. Ignore the other. Indicate to the Biggy that both of you have common benefit working together than bringing the weaker party into the game. Convince the Biggy that both in unison could rob the market share of the weak party who if you do not finish off now would one day eat into the common market share leading to loss of not only market standing of both but turn off the tap of cash-flow which is simply flowing at present unhindered. This message is powerful enough. In general business practice there is more chance of big timers getting together rather than weakling attaching to a Biggy.

The legend: You have no control of what an opponent can do for you, but definitely you have option to tweak your response such that you tend to reduce his antagonism and make him work for a win-win solution.  As regards to Samsung of South Korea, China followed this master stroke to secure uninterrupted supply of semiconductors even after America banned Korean exports to China. 

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

Few thoughts on business warfare

Firms should always be prepared for the eventuality of business warfare when competition turns worse. Wherewithal for meeting opponents in the battlefield is collectively known as means. We are all familiar that business strategy implies the relationship between means, ways and ends. Here are few of my thoughts on business warfare:

Tools, techniques and weapons are in fact the means firms possess and must be used for defence, attack or for both. Deployment of these means have one or two aims: firstly respond to an attack by the opponent that throws you at crisis point. Secondly react to an imminent threat that might materialize in the near future. You make the choice of either defend or counter attack whetted by the following conditions:

a) Proportionate to the severity of attack and no more where the concerned attack is not expected to shake your market position in its entirety

b) The attack could result in a paradigm shift in your market standing

In the case of former care must be made not to over react. Because this depletes your means, leaving to the point of gross insufficiency especially in the case of recurrent offensive. There again you cannot fall into the trap Sun Tzu cautioned where expecting attack in every conceivable places you spread your defence thin.

Firms must be aware of the “Attacker’s Privilege” in business warfare. The option of the choice of time & place is with him. Liability of defending is then cast upon the defending firm who could run through major losses in its means inventory. One way of managing potential surprise attack is to institutionalize a system of intelligence & surveillance that could forewarn as regards to enemy intention, probable place/s of offensive, the level of severity and the deployment of means. Moreover, whether the opponent can sustain the attack in the short to medium terms must also be indicated.

A word of caution is not out pf place. Never get into false confidence that you can meet up with every challenges. “Homer Nods”. Geoeconomics forewarn that every cent spent on attack or defence must be recouped by a firm within a reasonable time frame.

A contrast between destructive construction versus constructive destruction must be made. The former entails destruction first but is generally followed by belter times dawning in terms of enhancement of product features in coming days that would compensate for the losses incurred. The latter runs with a big risk. Assuming you are going for a major phase of construction as a prelude to deliver destruction to the enemy quarter might end up both you and the opponent lose the market share to an incoming competitor who is poised to reap the advantages at your peril.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist