The Art of War and Its Relevance in Modern Business Strategy

When people talk about business strategy, it's natural to think of numbers, analyzing data, and quantifying everything. However, the truth is that strategy in business is a relatively new concept, and it actually came into existence in the late 1950s, and early 1960s, as an offshoot of military strategy.

Military strategy is an age-old discipline that has its roots in the great military strategists, such as Sun Tzu and Carl von Clausewitz, who developed ways of conceptualizing the competition between forces. The best result of military strategy, they believed, is not having a war. And the same philosophy applies to business strategy as well.

Sun Tzu, a Chinese general/philosopher who wrote one of the most influential books on war called "The Art of War," wanted to get in behind the mechanics of war to talk more about philosophy. And that's why the book has had such staying power - because nothing about the world has really changed from that deeper philosophical sense, even though the world has evolved, and the equipment used in war has changed.

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One thing Sun Tzu said was: "The supreme art of war is to subdue the enemy without fighting." In business, that means creating a strategy that causes potential competitors to say, "I'm going to compete elsewhere." Hopefully, they will succeed elsewhere, and that's the perfect strategy so that you won't get into wars, and they won't attack you. There's no instance of a nation benefiting from prolonged warfare, and the same applies to business. You only want to engage in competitions where you can create a win without creating a loser who will keep on attacking you. You either have to absolutely eliminate a competitor entirely or give it a chance to find another place to play. You can create for them an escape road to a different part of the market, a different segment.

But how do you do that? First, you need to surround yourself with the right people. Sun Tzu said, "Treat your men as you would your own beloved sons. And they will follow you into the deepest valley." You need to view your employees as members of your family and treat them with love, not just as pawns in a bigger game. When you treat your employees well, they will be creative for you, treat the customer exactly the way you want them to, develop the people underneath them, and do all of these things that are done for love, not because somebody commanded them to do it.

Another important factor to consider is the customer. In due course, what was recognized in the world of business strategy is that there's a third super important actor, and that is the customer. Early business strategy didn't pay much attention to the customer, but now, it's essential to consider what is important to the company, competitors, and customers. You need to ask yourself, "What can I uniquely do for a particular set of customers?" "Would-be competitors will choose to do something else because I do that thing better." That is not a prolonged war. If you do it right, it's a prolonged peace.

In conclusion, business strategy has its roots in military strategy, and there is much that can be learned from great military strategists, such as Sun Tzu. The Art of War is a broad philosophical book that MBA students would be well-advised to take on and read in business school. It provides a better perspective on how to use business strategy by showing that the best result is not having a war, and the supreme art of war is to subdue the enemy without fighting. By treating your employees like your own beloved sons, creating an escape road for your competitors, and paying attention to the customer, you can create.

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