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Sun Tzu Art Of War In Business Strategy: Advice For New Entrepreneurs?
In Sun Tzu Art Of War, Business is War; you must compete to win customers.
Suppose you are running a small start-up or a new company. How would you apply Sun Tzu Art Of War business strategy?
You will have to compete with companies that have more resources, marketing budgets, and economies of scale.
How Would Sun Tzu's Art Of War Business Strategy Help You?
The first Art Of War strategy in business for Sun Tzu would be to choose a battleground that is undefended or an area where there is low competition.
Here is a quote from Sun Tzu Art of War, he said,
You will surely succeed in your attack if you only attack undefended places. You can also ensure the safety of your defense if you only hold positions that cannot be attacked.
When considering where to open your business, you must look for areas where your competition is not as prominent, which can be beneficial.
By strategically choosing a location that is overlooked by other businesses in your industry, you can carve out a niche for yourself and establish a strong presence in that territory.
This approach allows you to focus on meeting the needs of customers who existing competitors may have underserved.
Once you have identified a suitable location, it is important to develop a comprehensive strategy to conquer that area effectively.
This may involve conducting market research to understand the specific demands and preferences of the local customer base. By tailoring your products or services to meet these needs, you can differentiate yourself from competitors and attract a loyal customer following.
Know Your Competitor
In business, you have to know who you are competing. Sun Tzu would call these your "enemies." You have to be very detailed in knowing who your enemy is.
This is fundamental in terms of the Art Of War business strategy. Here is one of Sun Tzu's famous quotes,
If you know yourself and know your enemy, you will fear not the result of a hundred battles. If you do not know the enemy but know yourself, you will win some and lose some. If you know neither the enemy nor yourself, you will be in danger in every battle.
Sun Tzu suggests by knowing and studying your competitors, you will know their strengths and weaknesses. From there, you can come up with business strategies to compete with them.
You must be proactive in identifying opportunities where you can outmaneuver your business rivals. Following Sun Tzu strategies in business, one effective way to do this is by exploring and exploiting the following areas:
Geographic areas not occupied by them or areas where they exhibit weaknesses. Expanding your business into regions where your competitors have little to no presence can provide you with a significant advantage. By establishing your brand in these untapped markets, you can capture new customers and build loyalty without facing direct competition. Moreover, understanding local preferences and adapting your offerings to meet the specific demands of these areas can further enhance your position and increase market penetration.
Products that they are not proficient in or that do not align with their core competencies. By identifying gaps in your competitor's product offerings, you can develop and promote products that fulfill unmet needs in the market. This not only positions your business as a more appealing option for consumers but also allows you to differentiate yourself from competitors who may struggle to innovate or diversify their product lines. Focusing on quality, unique features, or specialized offerings can attract customers who are seeking alternatives to what your competitors provide.
Services that they do not provide or areas where their service delivery is lacking. Exceptional customer service can be a powerful differentiator in a crowded marketplace. If your competitors fail to offer certain services or do so inadequately, this presents a prime opportunity for your business to step in and fill that void. By providing superior service, whether through better customer support, faster response times, or personalized experiences, you can build a strong reputation that resonates with consumers. This commitment to service excellence can foster customer loyalty and encourage word-of-mouth referrals, further enhancing your competitive position.
Sun Tzu Strategy On Defending Yourself From Competitors?
In addition to attacking your target market, setting up a solid defense to protect your business from potential threats, including attacks from larger competitors is crucial.
How do you do that?
Build Brand Loyalty
Competing with rivals is a battle to capture the customer market in the business world. To maintain a loyal customer base, it is crucial to establish strong brand loyalty among your clientele.
You want your customers to be loyal to your brand.
With this focus in mind, it is important to develop strategies and tactics that foster strong brand loyalty.
Building a loyal customer base creates a significant barrier that makes it difficult for competitors to gain a foothold in the market. This strategic aspect of branding parallels the principles found in the art of war.
The aim is to build trust, confidence, and belief in the brand that aligns with their beliefs.
Constant innovation
To maintain a competitive edge, it's essential to consistently launch new products and introduce innovative ideas. By surprising your competitors with fresh innovations, you can effectively capture a larger share of the market.
In business, much like in warfare, it is vital to continuously work on increasing your market share. If you neglect this, you risk losing your current market position to your competitors.
Sun Tzu says,
Always carefully study the enemy's strengths and weaknesses against yours.
Once you know yourself and know your enemy, you will not fear the results of a hundred battles.
Remember, business is like war. Attack the weak and avoid the strong. So you can easily conquer your space in the market.
Business Flexibility
Today, business flexibility emerges as a crucial key to sustainable success. Just as in the dynamics of war, where the enemy continuously shifts their positions, strategies, and tactics to gain the upper hand, businesses must also remain vigilant and responsive to the actions of their competitors.
The marketplace is a battleground where companies must be prepared to pivot and adjust their approaches in real time to maintain their competitive edge.
Sun Tzu, in his Art Of War, said that, like water, in war, nothing is constant. This also applies to business, where market conditions, consumer preferences, and technological advancements are in continuous change.
So, all businesses that want to compete, survive, or grow must cultivate a mindset of adaptability.
This means being open to change, actively seeking it out, and anticipating it before it occurs.
Flexibility in business strategies comes in various ways, such as altering product offerings in response to customer feedback, adjusting marketing tactics to align with emerging trends, or even re-evaluating supply chain logistics in light of global disruptions.
Never be too rigid and stick to one direction. Embracing a mindset of flexibility allows your business to respond swiftly to unforeseen challenges and capitalize on new opportunities.
Companies that rigidly adhere to outdated practices or strategies risk being outmaneuvered by more agile competitors who can swiftly realign their resources and efforts to meet the demands of the current market landscape.
Therefore, fostering an environment encouraging innovation, experimentation, and a willingness to learn from successes and failures is essential.
This adaptability enhances resilience and positions a business to thrive amidst uncertainty and change, ultimately leading to long-term sustainability and growth.
That is Sun Tzu Art Of War in Business Strategy.
To Sun Tzu war is business. Sun Tzu mentioned in his book, Chapter 2, "Prolonged War," that if there is nothing to profit from fighting, then do not fight.
He also said that when you understand the damages of war, you will understand how to profit from it.
So it's all about profits in war. Just like running a business. It's all about making money. Learn more about how to succeed using Sun Tzu's Art Of War strategies in business.
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