Sun Tzu: the battle for competitive advantage

In this video, Ali Ehsan draws parallels between Sun Tzu’s Art of War and the boardroom. Top CEOs, like successful generals, are looking to increase their territories or – in business terminology – market share.

With the increased integration of markets in the global economy, however, sustaining competitive advantage over the long term has become much harder for businesses, as the competition is adapting quickly and closing in at a fast pace.

CEOs and their teams find themselves on a continual learning curve, setting new rules to try to maintain their lead. They have learned to be flexible and adapt to consistent market changes without conceding advantage, trying to stay a step ahead of the competition by improving their core competencies.

Regular benchmarking of best practices gives firms short-term advantages in the areas of effectiveness, design, production, sales and delivery. However, this is no longer sufficient to sustain the competitive edge as others might achieve the same productivity in a short space of time and take the lead position.

Strategic positioning is a company’s attempt to preserve their unique qualities while introducing new operational activities or performing existing activities using new methods.

Your task

Can you think of any companies that have strategically re-positioned themselves in order to strengthen their place in the global economy?

Share your examples with fellow learners.