Essentials of Corporate Warfare

"In tactics, as in strategy, superiority of numbers is the most common element in victory."
--Carl von Clauswitz, On War

“Kind-hearted people might of course think there was some ingenious way to…defeat [a competitor] without too much [harm done], and might imagine this is the true goal of the art of [corporate warfare]. Pleasant as it [may sound], it is a fallacy that must be exposed: [corporate warfare] is such a dangerous business that the mistakes which come from kindness are the very worst. The maximum use of force is in no way incompatible with the simultaneous use of the intellect.”

Interpretation:

• Corporate warfare is not for the weak
• Don’t try to lessen or dampen the effects of certain actions on the opponent
• Kindness creates mistakes of the worst variety
• Maximum force requires maximum intellect

Essentials of Offense and Defense

Offense increases strength, which is produced by conquest

Defense increases the level or ability of self-preservation

Defensive measures are often undertaken by the weaker opponent; entrenchments and fixed fortifications are among the strongest forms of a good defense, tactically; but they should not be relied upon heavily. The defender is able, though; to more easily draw on its sources of strength, especially under fortification.

Historically, the defender has been able to choose the grounds for battle

The essence of defending is waiting to see what the aggressor’s intentions will be. To master defense is being able to see when the aggressor has exhausted his or her resources, and then exploit that opportunity. An active defense, while being perceived as passivity by the aggressor, and as an aggression of well-directed blows by the defender is what is necessary to mastering the art of defense. Defense is only done with the intent of moving into the offense; shifting from defender to aggressor.

Public opinion is more likely to favor the strategic defender—significant conquests by one contender will threaten all remaining possible opponents and affect the public in a negative fashion if the information is not “spun” correctly. Even so, the general public may look upon the firm on the offense negatively, while they look upon the “little guy,” that is, the smaller or defensive firm, in a positive light. This is particularly true in U.S. and European cultures.

Offensively, there should be emphasis placed on the pursuit, which permits the infliction of disproportionate losses on the loser of corporate combat.

Keep in mind, however strongly an offensive may start out, inevitably it must weaken as it advances from its original base.

The aggressor’s force is degraded by the needs to provide garrisons, to maintain the lines of supply and communications, and the greater physical strain on troops in the attack.

Every offensive, however victorious, has a "culminating point,” a point in which it is able to reach it’s natural critical mass.

The Russian Winter Principle: Given that the defender has enough time and resources in which to recover, the aggressor will inevitably reach a point at which he or she must take up the defense. If the business unit pushes too far, the equilibrium will shift against that unit. The aggressor, in his or her own retreat (often through devastated territory), cannot draw on the defender's usual resources, from which he or she draws strength.

Conclusions on Offense and Defense

The first rule is therefore to enter the field with a force as strong as possible. This sounds very like a commonplace, but still it is really not so.

The second rule, then, is to enter the battlefield with a force that is led by the most intellectually sound corporate leader who has a strong grasp of the strategic; with subordinate managers that have strong grasps on the tactical.

Strength: The ability to be powerfully effective

The following conditions must exist for strength to be present, in priority order:

1) Capable of exerting a high amount of force

2) In good or sound health; robust

3) Capable of the effective exercise of authority

4) Economically or financially sound or thriving

5) Having force of character, will, morality, or intelligence

6) Having or showing ability or achievement in a specified field

7) Capable of withstanding great force or wear; or excellent binding or espirit de corps

8) Not easily upset

9) Having force or rapidity of motion

10) Intense in degree or quality