Wen huichang, li shuxian
In both cases, i was advised to exploit the advantages of uncontrollable factors。
While the age of grandchildren and michael potter is different from that of more than 2000, there is a common ground in the military strategy of grandchildren and in the operational strategy of porter. Both the sun tzu act and michael potter's diamond model express the notion that human beings should use controllable or uncontrollable factors to maximize better results and cannot be subject to uncontrollable factors。
In sun tzu, in order to compare the strengths and weaknesses of our side and the enemy and to measure the success of the war, the sun tzu put forward five pre-war factors, namely, the five criteria for the judgement. When those conditions are compared, the battle is fought if there is a chance, and if there is no chance, the war is avoided。
Porter argued that “prosperity is not inheritance, but creation”, arguing that competitiveness to prosper is based on a combination of four factors, namely production conditions, demand conditions, associated and supporting industries, and operating conditions. Diamond models were originally created to analyse national competitiveness, but are also useful in analysing the competitiveness of industries, enterprises and individuals。
This paper analyses the linkages between the five elements of sun tzu's art of war and the four elements of the michael potter diamond model (as shown in figure 1)。
Roads and operating conditions
The road means that the monarchs, generals, soldiers and the people should share common goals and beliefs, and porter believes that under the conditions in which the diamond model operates, only the same objectives of the enterprise and the same investment motivation of the shareholders can guide investors to sustained investment. It is also essential that employees share the same values, so that they willingly contribute and work for the enterprise. Real leadership does not lead staff blindly without conditions, but rather aims the same organization and its members. This coincides with the view of the grandson that the monarchs, generals, soldiers and people should be united in the war。
Days and related support industries
The relevant and supporting industries in the diamond model are equivalent to “days”, including government policies, investment conditions, business culture, etc. The invention of new technologies, oil shocks, financial crises etc. Also fall within the category of “days”. From an enterprise's point of view, these externalities may not be controlled, but they would be useful if they were exploited in depth. If the linkages between external factors and enterprises are fully exploited, barriers can turn into incentives。
For example, unlike united states auto-manufacturing firms, toyota, japan, has created hybrid vehicles such as “environmentally friendly cars” by considering united states stringent environmental restrictions as new opportunities rather than obstacles to corporate growth. Toyota, japan, has facilitated the use of the uncontrollable factor of "days", and i use the advantages of digging。
Land and related support industries
Like days, “land” also belongs to the diamond model and support industry. However, “land” has a more direct relationship to business operations than “day” and is more conducive to business operations if reasonably used. Technical and r & d research centres, the level of supply of infrastructure services such as roads, communications, etc., all fall under the category of “land”. Porter emphasized two characteristics for the relevant and supporting industries, first, the existence of these related and supporting industries (availability) and second, the synergy between them (synergy)。
According to porter, the latter is more competitive than the former, as the competitive advantage depends on how firms effectively use related and supporting industries. This goes hand in hand with the idea in the sun tzu law of how to use the environment effectively。
Willing and production conditions
The production conditions of the diamond model are divided into the base (basic) production conditions and the advanced (advanced) production conditions of skilled labour and high technology. Porter believes that higher production conditions are more important than basic conditions when determining competitive advantage. This production condition, if it corresponds to the sun tzu act, is based on the number of soldiers and the capability of generals。
The grandson believes that more emphasis should be placed on the qualities and capabilities of the “will” than on the number of soldiers, and porter's claim is the same. Indeed, in business and war, many success stories have proved to be more important than cheap labour and the number of soldiers, talented and good operators and generals。
Law and operating conditions
The law is the organizational system and the rules that make the army as a whole well-functioning, equivalent to the conditions under which the diamond model operates. In the business context, the most suitable dominant structure varies according to the industry and business culture of the enterprise, and is generally influenced by national economic policies. As a result, the likelihood of success increases if the enterprise's operating system is compatible with national economic policies and organizational patterns。
For example, the business culture should build appropriate corporate governance structures based on differences in individualism, collectivism, conservativeness, aggressiveness, etc. It is important to strictly adhere to the existing organizational systems and rules, as advocated in the sun tzu law, and to build on them in order to create a value-creating business culture。
Understanding the enemy and requirements
The five elements of the grandson's claim do not have elements that match the requirements of the diamond model, but the requirements can be linked to the “know-your-enemy” claimed by the grandson. Throughout the sun tzu law, the importance of “know your enemy” is emphasized. For example, the importance of “know one's enemy” is reflected in the famous phrase of “know one's own, know one's own” in the book “assisting on others”. From an operational point of view, analysis of enemy information can be seen as a competitive enterprise survey。
In the consumer market, consumers decide whether to purchase or repurchase based on the good or bad of the product or service provided by the enterprise, so that the consumer has jurisdiction over the product or service, even if it produces a product of better quality than the counterparty, the enterprise will fail if it is not for the consumer。
If understanding the enemy in war is a prerequisite for victory, it is also necessary to manage consumer demand operationally. For example, enterprises tend to target specific areas or markets before launching new products or services, which is the process of identifying consumer demand. Combining the five elements of “know-your-enemy” with grandchildren would be a clever match with all the elements of the diamond model。
Through the above analysis, the combination of the sun tzu law and porter's diamond model has inspired businesses to “comprehensive analytical capability”, and both the sun tzu law and the diamond model have systematically articulated necessary factors. But there is a decisive difference between military and business strategies, and war is essentially a “zero-sum game” in which the other party has to fail to win, while doing business is a “multi-win game” that can win itself, competitors and consumers alike. Apples, for example, are the largest competitors for tristar electronics in smartphones, but they are the biggest customers of tristar electronics in semiconductors。
They can be both competitive relationships and cooperative relationships, like coca-cola and pepsi-cola, which, while highly competitive, both grow in competition. The grandson claims that war is a trick, that it is not appropriate to impose a military strategy on the business, that it is unconditional to win in the war, but that “value creation” in the business is based on free competition without deception within established rules。
Honorary professor and former dean, international college, seoul national university, wen huichang
Managing director, mcquestions management advisory board, li swe
