Sunday, August 12, 2012

New Lanchester Strategy Volume 3: Sales and Marketing Strategy for the Strong


My notes from from New Lanchester Strategy: Sales and Marketing Strategy for the Strong...

The strategy of the weak focuses on offense while the strategy of the strong focuses on defense.  Defending as the stronger opponent means preventing the weaker opponent from attacking, that is, preventing the weak from using the strategy of the weak.

Matching Operations
The main strategy of the weak is differentiation, therefore the strong can negate the strategy by matching.

Matching operations must be quick to prevent the opponent from gaining confidence and momentum.  Repeated matching sends a message to the weaker competitors that you are not vulnerable to attack.
  1. Detect attempts at differentiation by setting up a information gathering system
  2. Neutralise differentiation by matching
See also "neutralisation innovation" from Escape Velocity

Engage in Wide-Area Battles
The weak prefer to fight local battles therefore the strong should force them to expand their campaign.

  • Fight in open territory, that is, large markets with weak boundaries
  • Go after the mainstream, that is, customers that tend to follow the crowd 
  • Use general purpose products, that is, try to undermine the ability to segment the customer base
Engage in Stochastic Battles
The strong should avoid one-on-one competition and instead use numerical strength to overpower others.

The strong should prefer markets where there are many competitors:

  • consumers in these markets will tend to choose based on name recognition
  • weaker competitors will weaken themselves fighting each other
Engage in Remote Battles
To counter the close-combat strategy of the weak, the strong should prefer fighting from a distance to allow them to exploit their numerical strength, that is, remote battles.

  • Emphasise advertising and publicity
New Lanchester Strategy suggests that Pull is a strategy of the weak and the strong should instead Push products and services.  From a Lean perspective, this seems misguided.

Engage in Comprehensive Battles
The weak will focus on one area.  The strong should counter with everything they have available.

  • Defend AND counterattack at the same time.  When a weaker rival launches an attack, both respond to the attack and launch your own attack against another region at the same time.  This forces the weak to split their resources.
  • Improve product strength, service, and sales strength.  Continuously improve the quality of all your "weapons", product strength, service, and sales strength.
Inducement Operations
Inducement operations are about luring opponents into situations where you have the upper hand.

The weak will use diversionary operations to prevent the strong from detecting their true objectives.  To counter this, the strong should make the first move to force the weak to respond, distracting them from launching their own offensives.

No comments:

Post a Comment