Business Strategist: wei chi

Thursday, 17 June 2021

Wei Chi lessons in business strategy

Wei Chi is a board game suitable for the business strategist who plays the long game. It is part of the Chinese culture to wait patiently, holding the position amidst various odds for considerable time to finally force the opponent either to surrender or quit. In business strategy Wei Chi teaches valuable lessons that border on staying put at the same time going ahead:

Market presence is the utmost lesson from Wei Chi. In a typical market, we have customers, products and competitors. An overseeing authority in the form of regulator is ever present even though its presence is not seen but felt. This may be a Government arm or self-regulatory mechanism. Be that as it may, once the market recognizes a company and the customers accept its product the first salvo is already fired.

Immediately after gaining market presence & acceptance, it behoves the firm to blow the whistle for networking. In high-tech market, networking connects users, peers, specialists, critics, promoters, industry association spokespersons, regulators thence to vital segments of customers whose representatives are corralled in to broadcast the benefits of the product, its novelty, durability and the price for value that product gives to discerning customers. This is not just PR campaign but a well thought of business manoeuvre that has the germination in unseating the market’s powerful opponents later on.

Interestingly, Wei Chi also teaches a point or two regarding the concentration level of the firm in a market where competition is intense and it is a do or die battle to gain significant market share. Concentrate but diversify is the maxim of Wei Chi. Huawei one the world’s largest providers of telecommunication equipment, networking gears and smartphones uses this Wei Chi strategy very well.

After gaining foothold In Sweden initially where Ericsson holds major slice of master Huawei was booted out by Swedish authorities. Whatever the reasons behind the move it is clear that Swedish Government need to save Ericsson. Therefore, Huawei decided to diversify quickly into Germany and France.

Wei Chi has another cautionary teaching. A Wei Chi player constantly looks at the board and how it appears now and how it would appear afterwards when moves are made by either or both parties. Keeping the strategy change at minimum level the game instils in the mind of business strategist to give broader allowance for right type of business manoeuvre when faced with an opponent who is being helped by third party externally or improving breakthrough technology domestically.

Surely, to be ready with such an eventuality Wei Chi urges firms to invest in R&D, new processes, and come out with superior product that can compete with its own terms. At the time of writing there is so far no worthy alternative to Huawei in mobile technology and Telco infra-structure neither in USA nor in Western Europe.

Cheers!

Muthu Ashraff

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog: Business Strategist

Friday, 11 June 2021

Wei Chi underpins China business strategy

China Inc., is growing more and more powerful in every aspect of geoeconomics: trade, finance, investment, national defence and offensive posture. Why her business strategy has succeeded to this extent in the last 50 years overshadowing America & EU put together is a big question in the minds of western analysts. Answer is simple: it is none other than Wei Chi.

Underlying principle of the traditional board game of Wei Chi is totally different from Chess which is most familiar to western business strategists, in that while Chess goes after killing & capture Wei Chi desires control as the end game goal. Further elaboration of this must connect the dots between space, surrounding and domination so that the opponent either abdicates or comes for a peaceful settlement.

Interestingly, the game can be played in both domestic and foreign markets with equal felicity. In domestic market, break-even price sets the tone where most modern features are incorporated in a typical consumer product that is in high demand and user friendly to the local population distinguishing of course the urbanites and the larger majority living in faraway from the hustle bustle of the townships. Household appliances is one item that fits the bill perfectly in this category.

When it comes to international market place, the control theme is configured to take into count the nuances of the buyer predilection and behaviour so that parity becomes vital criteria over and above superiority. Most products whether high tech or low tech are marginally priced lower than the current ones competing in the market. The features are almost equal or higher resulting in quality products being sold with competitive price structure.

Underpinning aspect, therefore, is not to battle for control at the centre as Chess demands but to advance on the sides and corners. The ultimate goal is to obtain initially market presence and progressively get more space, more leverage and in nutshell more market share. Importantly, every kind of electrical and electronic products churned out from Chinese factories broadcast this simple theme of craving for the market presence. Once the products have entered into the psyche of consumer recognition as quality ones, manufacturer/exporter then aims for something higher.

The magic wand of connectivity enters into the fray. Raising the goal post still higher, connectivity opens expansionary area of selling associated products of the same company. Huawei did this excellently well, after gaining market acceptance for mobile handsets in a big swig, it moved upscale in contracting for high tag items like selling mobile software and installing Telco Infra structure that results in facilitating further demand for the mobile sets indirectly.

Incidentally, 5G architecture contributes to greater efficiency in the performance of mobiles that use Huawei patented software and beamed thru Huawei built Telco infra-structure!