China has literally
created its own physical beachheads through the construction of man-made
islands at enormous expense. These newly
constructed land aircraft carriers will enable them to plant their flag on an actual
island in disputed territories. This
goes to show that SPECTRE, SMERSH and even Dr. Evil were well ahead of their
time with the construction of their own “underground” island lairs decades ago.
More importantly and ominously, just as
land is a commercially and militarily valuable commodity, this project
represents a serious long-term effort with the possible objective of forcing a
negotiated peace for territorial recognition.
In business a similar tactic is employed when the big boy in
the market, usually a large, well-financed corporation with almost unlimited
resources “intrudes” into your commercial stronghold or niche by creating a
base behind enemy lines for the purposes of capturing market share, poaching
talent, stealing customers and in general under-mining your efforts. With several “bases” they’re everywhere and can
strike from anywhere which is always quite disconcerting. A retreat will result in a smaller pie for
your firm and you’ll be reduced to scavenging for crumbs and commercial
irrelevance.
An effective and cost effective counter-measure is by
securing strong alliances (preferably beforehand in the form of good
relationships with customers, suppliers, and banks) and utilizing guerilla
tactics to turn the tide and put the large competitor on the defensive. The good news for you is that your competitor
is now already within your territory so he is already surrounded and must either
expend more time and money in a face-saving maneuver by defending the position
or acquiesce through a face-losing breakout.
Smaller forces are always nimbler and lightning quick with a shorter
chain of command and fewer operational restrictions vs. well-financed firm even
with smaller independently operating units.
Copyright Indo-Brazilian Associates LLC 2014. All rights reserved.
Indo-Brazilian Associates LLC is a NYC-based global advisory service and think tank with connections at the highest levels. We provide you the tools to get on the "Short List" in your business endeavors.
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