Sun Tzu’s Art of Business: Strategic Principles for Success
The Art of War
Introduction
Sun Tzu’s Art of War, a masterpiece on strategy, has transcended its military origins and entered the world of business. Mark McNeilly’s Sun Tzu and the Art of Business expertly adapts Sun Tzu’s philosophy for modern business, offering clear and actionable concepts.
Through six strategic principles, McNeilly demonstrates how businesses can apply Sun Tzu’s wisdom to defeat competitors and achieve market dominance.
Objective
Sun Tzu and the Art of Business aims to illustrate how Sun Tzu’s strategies can be applied to existing or new businesses. The book uses examples from companies like Kmart, Walmart, CNN, MTV, and Southwest Airlines to demonstrate how strategic decisions impact success or failure.
Sun Tzu and the Art of Business
1. Win Without Fighting
Capture your market without destroying it.
Key Principles:
- “War is a matter of vital importance to the State; it is the domain of life and death, the road to survival or to ruin. Therefore, it is mandatory to study it thoroughly.”
- “Your goal should be to take all under heaven intact. Thus, your troops are not worn out and your gains will be complete. This is the art of offensive strategy.”
- “War is a grave matter; it is imperative that men undertake it only after due reflection.”
- “Subduing the enemy without fighting is the acme of skill.”
- “Replace your enemy’s flags and banners with your own, mix your chariots with his, and return to his camp. Treat his captives kindly and care for them. This is called winning a complete victory, to strengthen oneself by weakening the enemy.”
Winning without fighting involves subtle, indirect attacks that are less likely to provoke a competitive response. This allows for gains in market share with minimal disruption.
2. Avoid Strength, Attack Weakness
Attack where they least expect it.
Key Principles:
- “Just as water shapes its flow in accordance with the ground, so an army avoids strength and strikes weakness.”
- “If, unable to control your impatience, you order your troops to swarm up the wall like ants, one-third of them will be killed without taking the city. Such is the calamity of these attacks.”
- “Plunge into emptiness, strike against the void, bypass what he defends, attack where he does not expect you.”
- “Close to the field of battle, await an enemy coming from afar; against an exhausted enemy, an army well rested; against well-fed troops, others hungry. This is how one needs little strength to achieve much.”
- “The supreme excellence in war is to attack the enemy’s plans.”
- “Invincibility lies in defense; the possibility of victory, in attack.”
Attacking a competitor’s weaknesses is more efficient than confronting their strengths. This principle encourages innovation, niche market targeting, and geographic expansion.
3. Deception and Prior Knowledge
Maximize the power of market information.
Key Principles:
- “What enables the wise sovereign and the good general to strike and conquer, and achieve things beyond the reach of ordinary men, is foreknowledge.”
- “If ignorant of the plans of neighboring states, one cannot make timely alliances. If ignorant of the conditions of mountains, forests, dangerous defiles, marshes and swamps, one cannot conduct the march of an army. If one does not use native guides, one cannot gain the advantages of the ground. Only a general who understands all three is fit to command the armies of a hegemonic king.”
- “If you intend to wage an offensive war, you must know the men employed by the enemy: are they intelligent or stupid, capable or incapable? Having assessed their abilities, take appropriate measures.”
- “Therefore, determine the plans of the enemy and you will know which strategy will be effective and which will not.”
- “All warfare is based on deception.”
Thorough knowledge of competitors, their strengths, weaknesses, and plans, as well as self-awareness, are crucial for success.
4. Speed and Preparation
Exercise due diligence to outperform competitors.
Key Principle:
- “Speed is the essence of war. Take advantage of the enemy’s unpreparedness; travel by unexpected routes and strike him where he has taken no precautions.”
Speed and decisive action are essential in the rapidly changing business environment. Combined with deception, speed can disrupt competitors and create opportunities.
5. Influence Your Opponent
Shape the strategy to dominate the competition.
Key Principles:
- “Those skilled in war bring the enemy to the field of battle and are not brought there by him.”
- “Do not press an enemy at bay. Desperate men fight like wild beasts. How much truer is this of men who know they have no choice but to fight to the death!””
Influencing a competitor’s strategy and actions is key to victory. This involves understanding their thought processes and using direct and indirect force to shape their decisions.
6. Character-Based Leadership
Exercise effective leadership in turbulent times.
Key Principle:
- “A general who does not seek personal glory when advancing, nor personal safety when retreating, but whose only purpose is to protect the people and promote the best interests of his sovereign, is the precious jewel of the state… Such men are few.”
Effective leadership requires strong character, leading by example, and prioritizing the needs of the organization and its people.
Opinion
In today’s globalized business environment, adapting and applying Sun Tzu’s principles can significantly increase the likelihood of success.
Bibliography
Sun Tzu and the Art of Business, Mark McNeilly, Oxford Publishing