Hardball Strategy (Aggressive Competition, The Path of the King)

Author: George Stalk
Publisher:
Publish Date: 2006-08-01
Features: The use of a strong strategy may sometimes lead to the opposite result. When a company employing this strategy lacks a cost advantage relative to its competitors, cannot produce homogeneous products, or does not possess superior product advantages, strength can become a dangerous strategy. When the attacking company lacks these advantages, competitors can undermine it through attractive new customer service, better products, or price cuts. The use of strength may also be excessive, leading to unpleasant consequences. If this power is strong enough to cause an opponent to face bankruptcy, the company may seek protection under bankruptcy protection clauses. Then, the opponent will have time and resources to renegotiate favorable contracts, shed bad assets. It can rise from the pains of bankruptcy even healthier and more streamlined, fully prepared to retaliate or adopt indirect attacks. Generally speaking, the best use of appropriate strength is to weaken the power of competitors rather than eliminating them. At the end, market leaders who launch large-scale strong offensives naturally become targets of competitive protests, negative news, and legal investigations. Overwhelming strength is a suitable strategy for some companies. These companies are willing to spend time gathering detailed market intelligence and developing plans to avoid the stigma of abusing market power. If accused of illegal activities, even if you are ultimately proven innocent, it will not help, because litigation itself is a distraction, it can deplete resources, and negatively impact brand reputation. Therefore, it is best to avoid such situations. However, for companies with strong resources, the ability to turn resources into combat power, the willingness to deploy resources, and self-control, large-scale, overwhelming strength is one of the most effective hardball strategies. Whether for onlookers or participants, it is likely one of the most exciting strategies. "It's interesting," Enrico said, "This is absolutely the most wonderful moment of my career."