MBA Class of 2014 (2012-14)/ Semester-II

Speed And Preparation:

Moving Swiftly To Overcome Your Competitors
Holland

Feint

England
Germany

Belgium

Main
Attack
Luxemburg
France
Maginot Line

The German Strategy in France: 1940

Parachute
Drops

Speed And Preparation:

Moving Swiftly To Overcome Your Competitors
Speed in execution is essential for a number of reasons;
speed is a substitute for resources, it shocks and
surprises your competitors, it is critical to exploiting
weaknesses and opportunities, and it allows you to build
momentum.
(Bharat Forge)

Substitute for Resources

Exploit Opportunities
And Weaknesses

Speed

Build Momentum

Provide Shock
and Surprise

Speed And Preparation:

Moving Swiftly To Overcome Your Competitors
Reinforce success, starve failure.

(GMs Saturn; Bajaj)

Launch an attack only if in a position to reinforce it,

in case successful. If unprepared to do so, you
have forfeited surprise, lost an opportunity for
taking market share, wasted resources, and given
your competitor a chance to learn your strategy and
tactics.

(Pepsi-Diet Pepsi-Crystal Pepsi).

Speed And Preparation:

Moving Swiftly To Overcome Your Competitors
Hence, what is essential in war is victory, not prolonged
operations.
(Arcelor Mittal;Jaguaer)
IMPORTANT CYCLE TIMES
Information/Decision/Action
Development
Manufacturing
Distribution
Customer Responsiveness

MEANS OF REDUCING CYCLE TIMES

Speed intelligence processing

Put discipline in decision-making
Communicate strategic actions
Design for flexibility
Wargame your strategy
Foster organisational learning

Speed And Preparation:

Moving Swiftly To Overcome Your Competitors
Reduce product development,
distribution cycle times.

manufacturing,

and

Tighter links between R&D and manufacturing.

Reduce manufacturing cycle times.

Reduce distribution time by improving your order process

and designing the process for fast customer fulfillment.
Improving customer satisfaction cycle time.
Preparation.
War gaming and scenario planning.
The attack / defend / attack cycle.
Organisational learning.

Situation: Your company has 10% market share, which is growing quickly due to rapid innovations.
Your competitor, Mammoth Company, has 30% share, which has been flat for five years.
Counterpunch A
Counterpunch B
Mammoth takes no action
at this time.
Probability = 10%

Mammoth retaliates with an ad campaign

combined with rebates, targeted at your
customers. Time to implement 3 months.
Probability = 20%

STRATEGIC MOVE
Mammoths response is
something totally unexpected
Probability = 10%

You can create a new distribution

Channel that reaches a small (5%)
but lucrative segment of Mammoths
Business.

Mammoth responds with a customer loyalty

campaign, trading services for continued
purchases. Time to implement is 6 months.
Probability = 20%

Mammoth attempts to replicate the new

Channel to better serve their customers.
Time to implement is 1 year.
Probability = 40%

Counter punch C:
You start now on building your own
customer loyalty program, so it is ready
when Mammoth introduces theirs.

Counterpunch E:
You use the 1 year lead time to repackage
your product so it can be distributed more
cost effectively.

Counterpunch D:
You combine your product with services and
value price

Counterpunch F:
You build another channel that targets Tiny
Company

Shape Your Opponent:

Employing Strategy To Master The Competition
Adversary to conform to your strategy, rules,
will.
(GM vs. Ford)
Your strategy must attack:
Resources of your competitor.
The minds, thought processes, and wills of its
executive team.

Employ both the direct and indirect force.

Gain and hold strategic positions in the
marketplace, using technology, key buyers, and
distribution channels to deny competitors
access to key markets.
(FedEx).

Shape Your Opponent:

Employing Strategy To Master The Competition
Implement strategic moves and send market signals that
bait your competition into committing strategic mistakes:
leading them to enter markets that will prove
unprofitable; or
directing them away from markets you desire.

Understanding the nature of alliances. How they are

formed and maintained, and how to sever those of your
competitor.
Direct and indirect forces. Goal of combining them is to:
coordinate your forces most effectively; and
deliver a series of stunning psychological blows from
which your competitor will not recover.

Shape Your Opponent:

Employing Strategy To Master The Competition
South Western
Front

Don
Front

Stalingrad

Hungarians

Italians

Rumanians

6th Army

Stalingrad
Front

Rumanians
4th Panzer

16th Mot
(After E. Manstein)

Soviet counterattack at Stalingrad

For instance, if you believe your competitor expects your

attack in the Australian market in one product category,
you might follow thorough with such a movement.
However, you do so only to mask a more substantial
blow in a more important product category in Germany.

Shape Your Opponent:

Employing Strategy To Master The Competition

Holding strategic positions. (Holding patents: Instant Photography Polaroid vs.

Kodak; Inkjet printers HP vs. Japanese).

There are several types of strategic high ground to hold:

Technology chokepoints that ensure competitive advantage.
Positions on industry boards and organisations that enable you to
influence the future direction of the industry.
Strongholds created by attracting key decision-makers in the customers
buying process. (Via FedEx, a free magazine).

Leaving a way out.

Alliances.
Once you have created an alliance, you must make skillful use of your
allies. (Reliance).
Although one must make allies to survive and prosper, do not chose poor
allies just to have allies. A bad alliance is worse than none at all.

When he is united, divide him.

Shape Your Opponent:

Employing Strategy To Master The Competition

Avoid being shaped. (GM vs. Ford)).

Hence, avoid two things:
using the same tactics twice in succession; and
telling people how you accomplished your success.

When victory is won, do not repeat the same tactics but respond to
circumstances in an infinite variety of ways.

Be obtuse and unclear when people ask you for your methods.
No one can then discern your strategy for winning.

Driving for Multi-Industry Global Leadership. Who?

Character Based Leadership:

Providing Effective Leadership in Turbulent Times
As a leader:

Build your character, not just your image.

Lead with actions, not just words.
Share employees trials, not just their
triumphs.
Motivate emotionally, not just materially.
Assign clearly defined missions to all,
avoiding mission overlap and confusion.
Make your strategy drive your organisation,
not the reverse.

Character Based Leadership:

Providing Effective Leadership in Turbulent Times

Build your character, not just your image:

Integrity.
Courage.

Balance.
Courage.
Loyalty.
Knowledge.

Unacceptable character flaws:

Wisdom.
Courage.
Sincerity.
Humanity.
Discipline.
Indecision.
Deceit.
Cowardice.
Selfishness.

Other weaknesses (recklessness; very quick tempered; anxious; over

compassionate).
Lead with actions, not just words (set example ). Select those who enjoy
providing service to customers and with a sense of humour.
Share employees trials not just their triumphs. (Employees dont follow
leaders they dont trust. Money isnt everything).
Motivate emotionally, not just materially.

Character Based Leadership:

Providing Effective Leadership in Turbulent Times
Assign clearly
confusion:

defined

missions;

do

not

tolerate

Decide on a strategy and assign missions.

Everyone must
know the high-level game plan and where they fit in. This
requires a communications plan.
Do not assign vague or overlapping missions to organisations
and individuals.

Make your strategy drive your organisation:

Proper staffing and organization of your staff. The management
team for your organisation must be composed of the best
people available.

Moral influence:
Select people who can resolve difficulties before they arise
and exploit the situation.
Work on your character.