The term strategy in business is derived from war strategy. But it takes mindful application. For example, it is imperative to win in a war, because it is a zero sum game. Your gain is your enemy’s loss. If you do not destroy the enemy, the enemy will destroy you. Therefore, you can use any deceptive, creative or brutal tactics to win the enemy.
But a Zero sum game is not a favorable one in business. Rather, a win-win outcome is common in business because even though you can hit down your competitor by any means, but the consequence will be your disadvantage. Because the code of conduct governing the business is rigid and transparent. Any violator will be forced to face the consequence of the business law. What’s more, there are social and moral dimension too in doing business. Even when the deceptive business escapes the legal bindings, they are still subject to public scrutiny and sanctions.
Furthermore, in an attempt of wining the competitor, a company may take a relentless pursuit of market share by expanding business excessively, by doing excessive promotional activities to take new customers in .
However, even when it knocks the competitor out of the business, it is not a winner unless it can increase its bottom-line (profit). The success of a business is not measured by market share alone. There are many factors which are worthy of careful consideration such as the bottom line (profit), revenue per employee, return on investment. Thus, war strategy is a clear cut strategy to win the enemy, but business strategy is not that straight forward especially these days where code of conducts and ethics prevail in the free market.
But a Zero sum game is not a favorable one in business. Rather, a win-win outcome is common in business because even though you can hit down your competitor by any means, but the consequence will be your disadvantage. Because the code of conduct governing the business is rigid and transparent. Any violator will be forced to face the consequence of the business law. What’s more, there are social and moral dimension too in doing business. Even when the deceptive business escapes the legal bindings, they are still subject to public scrutiny and sanctions.
Furthermore, in an attempt of wining the competitor, a company may take a relentless pursuit of market share by expanding business excessively, by doing excessive promotional activities to take new customers in .
However, even when it knocks the competitor out of the business, it is not a winner unless it can increase its bottom-line (profit). The success of a business is not measured by market share alone. There are many factors which are worthy of careful consideration such as the bottom line (profit), revenue per employee, return on investment. Thus, war strategy is a clear cut strategy to win the enemy, but business strategy is not that straight forward especially these days where code of conducts and ethics prevail in the free market.
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