Friday, September 2, 2011

Military tactics in Business


Military tactics have formed an integral part in business ever since. Since many a time business is compared to war many military tactics are also used in business.
These tactics are generally used in a competitive environment where one company needs to capture the other companies market. These tactics may be defensive or aggressive depending on whether one is defending market share or capturing it.

The different types of aggressive tactics are


Frontal Attack- Frontal Attack is a direct head on attack to your competitor where you attack your competitor in the market where he is strong. This is generally between companies of equal strength. It is an attack directly on the opponent’s strength and is, therefore, not the sharpest form of attack. Companies should consider such an attack if they have the resources of that can be committed to such an attack for a long time and have no other option available


Flank Attack- Flank attack is the form of attack where a company engages the competitor in an area where the opponent is weak. The target area is not one where the opponent is initially engaged but it is merely to distract the opponent. The idea is to split the competitor’s resources and distract him so that an attack can be launched at the main area later on.


Guerilla Attack- It aims at weakening the opponent by launching small attacks in different areas. The idea is to destabilize the opponent while remaining mobile.


Encirclement Attack- Encirclement attack is the form of the attack where you surround your competitor and then down him from the centre. The company must be able to block the opponent in whatever direction he turns thereby diluting his ability to retaliate in strength.


The different types of defensive tactics are


Position Defense- This is the form of defense where the company holds its position in the area where it is strong. This generally demobilizes the defender who may then become a sitting duck for the competitor.


Mobile Defense- This is the form of defense where a company creates more than one base and therefore the competitor does not know where to attack. In the meanwhile the company can collect its resources to launch a final attack to save its position. Such sort of a defense can be obtained by diversification of businesses.


Counter attack- Attack is sometimes considered the best form of attack and counter attack is generally used by companies which means attacking the area where the attacker is strong thereby making him withdraw to protect his own base. Another variation of counter attack is the pre-emptive attack where the company attacks in anticipation of an attack thereby saving its position.


Flanking Defense- In flanking defense a company generally occupies a position that could be of importance to the competitor in the future. This would provide the company with a vantage point and may prevent the competitor from attacking in the first place.


Withdrawl- Sometimes it is best to withdraw from the battlefield if the opponent is way too strong based on your resources. However, withdrawl is generally not a preferred option by business mainly due to emotional attachment, a feeling of loss, exit barriers in the industry etc.

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