Learning from Sun Tzu’s War Strategies for SMEs
Created on 4 July, 2024 • Marketing & Business Communication • 90 views • 3 minutes read
Applying Sun Tzu’s war strategies to small and medium enterprises (SMEs) is quite feasible. These strategies have been proven effective on the battlefield and have positively impacted national and international companies in their industry competitions. SME
Learning from Sun Tzu’s War Strategies for SMEs
Applying Sun Tzu’s war strategies to small and medium enterprises (SMEs) is quite feasible. These strategies have been proven effective on the battlefield and have positively impacted national and international companies in their industry competitions. SMEs should adopt Sun Tzu’s strategies to gain a competitive edge in the market.
In Indonesia, many SME owners have not yet implemented these strategies in their businesses. Whether due to lack of knowledge or difficulty in application, there hasn’t been much research on this. Regardless of the reason, we will outline some of Sun Tzu’s war strategies that SMEs can use to thrive in business competition.
Why Should SMEs Implement Sun Tzu’s Strategies?
Before diving into the specific strategies, let’s understand why SMEs need to implement Sun Tzu’s strategies. The business environment for SMEs today is vastly different from 5-10 years ago. In the past, SMEs could sustain themselves for a long time. However, many new SMEs now fail within a few months due to the increasingly challenging and competitive business landscape.
To survive in this environment, SME owners must be clever and creative in running their businesses. Relying solely on government protection may help temporarily, but not for the long term. Thus, SME owners need to rely on themselves and their resources to stay afloat and win the competition.
One valuable resource is Sun Tzu’s war strategies. Here are some key strategies that SMEs can apply to succeed.
Sun Tzu’s War Strategies for SMEs to Win the Competition
▶ Planning The first strategy is planning. Before entering the market, launching products, or recruiting resellers, SME owners should plan thoroughly. Planning should cover at least four areas:
- Production planning
- Marketing planning
- Financial planning
- Human resource planning
▶ Failing to plan is planning to fail. However, don’t be too afraid of failure. Create a solid plan, execute it quickly, evaluate the results, make improvements, and plan again for better outcomes.
▶ Assessing Market Competition "Know your enemy and know yourself, and you can fight a hundred battles without disaster. Know the ground, know the weather, and your victory will be complete." – Sun Tzu
▶ After thorough planning, the next step is to assess market competition. This involves comparing your strengths and weaknesses with those of your competitors, which in modern management is known as SWOT analysis (Strengths, Weaknesses, Opportunities, Threats). Understanding this will help you identify where to enter the market and start promoting your products or services.
▶ Providing Exceptional Service "To win a hundred victories in a hundred battles is not the acme of skill. To subdue the enemy without fighting is the acme of skill." – Sun Tzu
▶ There’s a famous eatery in Bantul, Yogyakarta, called Warung Mangut Lele Mbah Marto, which is always crowded despite its remote location, lack of aggressive promotion, and absence of large billboards. People flock there not because of heavy promotion or big discounts, but because of the delicious food and friendly service. For SMEs, exceptional service can be the key to winning the competition without heavy promotion. Learn from Mbah Marto on how to treat every customer well.
▶ Branding "The secret of deception is to manipulate the enemy’s perceptions. Make what is far appear near, and what is near appear far." – Sun Tzu
▶ Effective branding is crucial for SMEs to compete using Sun Tzu’s strategies. Proper branding can make your small business appear larger and more credible. The goal is to ensure competitors don’t realize your limited capacity. Use brand identity tools such as brochures, logos, websites, banners, email marketing, etc., to establish a strong brand presence.
These are a few of Sun Tzu’s war strategies that SMEs can adopt to gain a competitive advantage. There are many more strategies, and we will continue to update this information. See you in the next article!
Conclusion
Implementing Sun Tzu’s strategies can significantly benefit SMEs in today’s competitive business landscape. By focusing on thorough planning, assessing market competition, providing exceptional service, and effective branding, SMEs can enhance their chances of success. These strategies offer a framework for SMEs to adapt, survive, and thrive amidst growing challenges.