Define a strategy to defy competition
IF YOU thought competition surveillance was a recent phenomenon, think again. Gathering information about the enemy's position, motives, strengths and vulnerabilities, and using the information to anticipate his moves and plan one's own defence and offence strategies is an art as old as war itself. Every successful king and leader from Napoleon Bonaparte to Raja Raja Chola had an extensive spy network to ferret out information from remote corners of enemy strongholds. They often used ingenious methods to communicate with the headquarters. The information provided by this spy network played a crucial role in the success or failure of strategic military decisions of king and commanders. Talking of planning a war strategy Sun Tzu, a Chinese military strategist who wrote a treatise on The Art of War around the year 500 BC, professes.
"If you are ignorant of both your enemy and yourself,
then you are a fool and certain to be defeated in every battle.
If you know yourself, but not your enemy,
for every battle won, you will suffer a loss.
If you know your enemy and yourself, you will win every battle."
The battlefield has often been used as a metaphor for modern business, and dutifully, companies waging a marketing war take a leaf from the military to copy some of the manoeuvres used by the armed forces to take on the enemy. Some of these tactics include first mover advantage, flanking exercises, encirclement and siege manoeuvres. frontal attacks and even guerrilla marketing tactics.
Let us examine some of these in detail.
First mover advantage
It is said that he who `occupies the field of battle first and awaits an enemy is at ease, he who comes later to the scene and rushes into the fight is weary.' The first player in the field invariably gets crucial initial control over scarce resources and prime market segments. Having a head start also gives the opportunity to capture undivided attention of the customer and build a good reputation. Pioneering however, is not without its drawbacks. Moving first is both an expensive and risky proposition, as one does not get the chance to learn from the successes and mistakes of others.
Top of the line companies invariably adopt the first mover advantage to stay ahead of competition. Companies like Reliance, Tata, Microsoft and AT&T, which have many firsts to their credit and have pioneered new trends in the industry, are classic examples.
Second line offensive
Offence is the best form of defence, goes another military maxim. When there are two major competitors, second-line firms invariably play offence. They keep jabbing at the number one competitor's vulnerabilities. The Pepsi-Coke war exemplifies the offensive-defence strategy.
A late entrant in the Indian market, No. 2 Coke kept up a barrage of advertising campaigns that indirectly poked fun at Pepsi's vulnerabilities. Pepsi responded in style, and the war to capture eyeballs and market segments continues.
Flanking- on the edge of action
In military tactics, a flanking manoeuvre, also called a flank attack, is an attack on the sides of an opposing force. In marketing and strategic management, flanking represents a type of strategy designed to curtail direct confrontational losses. Not being in a position to directly confront bigger competitors, third-line firms often resort to flanking manoeuvres.
Flanking strategies can range from subtle advertising campaigns to exploring new niche markets, products and uncontested geographical areas that the bigger players would have bypassed.
Guerrilla warfare
When you lack the numbers, your strength lies in the element of surprise, is what they teach you in military school.
In guerrilla warfare, competitors with nothing to lose will ambush a stronger competitor through a series of quick, unpredictable attacks. Guerrilla marketing is also sometimes called undercover marketing or stealth marketing.
The primary requirement for this kind of competitive strategy is not money or brute strength, but time, energy and imagination.
Guerrilla tactics can involve using unconventional techniques like word of mouth campaigns, personal canvassing, bluejacking (sending a personal message by bluetooth), circulating pamphlets and printing advertisements behind receipts and vouchers.
No business is an island. The success of a business is relative to that of its competitors.
A comprehensive competitive strategy not only helps an organisation manage competition, but it is also the key determinant of success for any marketing strategy that it may choose to implement.
BINDU SRIDHAR
faqs@cnkonline.com
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