STRATEGY FOR HANDLING COMPETITION - Chanukya's Way

[Guest guest]

STRATEGY FOR HANDLING COMPETITION

 

- Radhakrishnan Pillai

 

 

The days of monopoly are over. Competition is in. No more can Public Sector

Units (PSUs) relax nor can traders and middle men think their huge profit

margins will continue for long. With the world becoming a global village and

technology reaching the remotest corners of each country, competition has opened

up like never before.

 

Therefore - as new projects are started, bigger brands are launched and new

markets are explored - a strategy to meet the challenges from the existing

players or future competitors are needed. Hence, a carefully researched, planned

and calculated move is necessary in every field today. Kautilya helps us in

building up a strategy to handle these competitions.

 

" After ascertaining the relative strength or weakness of powers, place, time,

revolts in rear, losses, expenses, gains and troubles, of himself and of the

enemy, the conqueror should march " (9.1.1)

 

 

Let us look at each of the aspects in the strategy. One needs to look at each of

the following before making our moves in the market place. Both, from his own

view point as also from that of the competitors.

 

1. POWER

 

Power comes in various forms - they are knowledge, money and also enthusiasm.

Some of the most successful projects are the ones that are deeply studies and

well researched. Remember, the foundations are important for the structure to

last.

 

2. PLACE

 

The right place is very important. The place should be conducive for the product

to sell. The right market should be considered even to carry out the

experimental process. One cannot launch an agricultural-based product in an

urban shopping mall. The right place for it is the rural segment.

 

3. TIME

 

Every product has a season – Just hit it at the right time ! The cold drink

companies will have its marketing strategy build around the summer time. While,

the paint industry will advertise just before the festival season.

 

4. REVOLTS IN REAR

 

Unknown to us there are possibilities of being stabbed behind our backs! Our

distributors, retailers in the market as well as our very own staff can be

targeted by our competitors in order to capture the market share.

 

5. LOSS

 

One should be aware of the losses that can happen in the process. It could not

be just financial but also of time, material and efforts.

 

6. EXPENSES

 

A budget should be worked out before the whole project is started. In most cases

the budgets shoot up as the process starts. A buffer for extra and miscellaneous

expenses should be considered.

 

7. GAINS (PROFITS)

 

How much is one finally going to get at the end of the whole exercise? A few

projects could be one time giving immediate gains, while others could reap their

fruits in long term.

 

8. TROUBLES

 

A lot of troubles will come in the way. The best way to avoid or reduce troubles

is to be aware of the maximum possible problems that can arise and keep a backup

plan for each.

 

Only after taking all these into account should one march to conquer the market.