2: Basics of Strategy

Contemporary business is frequently compared to fighting a military campaign. A campaign to gain new customers, as well as retaining the current ones, in essence, a war to stay in the business. Daily battles aim to beat the obvious enemy – the rival. Customers are winners, in case they are convinced that they have obtained the value that they have paid for. Business strives to gain more customers, as in war the aggressor aims to gain new territory. Usually, the basic weapon in the fight is price. Yet more sophisticated “weapons” exist quality, delivery and payment terms, additional services, and so on. If you are weak, you lose. You should be always on alert. Customers become more demanding. They always want to pay less, but to receive more value. They want to be serviced immediately. If you underestimate your enemy, you are out. If you start losing battles, sooner or later you will lose the entire war. The war repeats every single day. The battlefield is the marketplace, the corporation is like the army: similar chains of command (pyramidal) and similar rank system (General, Colonel, Major, Lieutenant, etc. – CEO, Director, Manager, Supervisor, Specialist, Officer, etc.). As with the military, businesses strive for better weapons – unique selling proposition, better products, and so on. Surprise creates advantage – new business models attract new customers, in both cases – communication – in and outside, is of critical importance.