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Do not fight battles you cannot winor win those that lose the war. |
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External Restraint: Today, Coke has a large share of the Japanese market for soft drinks because it took the time and made the investment to build a full range of functional strengths. When Coke made its first move into Japan, it found a complex, multi-layered distribution system. Using local bottlers, Coke recreated the kind of sales force it used in the United States. The Coke van or truck replaces empty bottles with new ones, not the trucks of independent wholesalers or distributors. By investing heavily in resources in the distribution system, Coke redefined the domestic game in Japan. Short-term financial returns were sacrificed to achieve long-term gains.
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A different approach in the invasion of markets is to use existing distributors and/or sales representatives as the delivery system. Only after strength is achieved is the transition made to corporate distribution centers by either purchasing distribution facilities or buying out agreements. The growth of successful distribution in many industries nationally can be traced from the use of outside agents to internally controlled delivery systems. |
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The head-on attack of heavy advertising investments and massive campaigns has often not worked for manufacturers who want to invade new foreign markets. New markets are conquered by deliberate, skillfully executed campaigns focused on methodically outmaneuvering entrenched competitors. |
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Internal Restraint: The issue of fighting a battle you cannot win has special applications for corporate politics. Good politicians negotiate. Bad politicians fight battles. |
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Hundreds of years before Christ, a Chinese warlord gave the following advice that has real application for corporate politics: |
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One who gains one victory becomes the Emperor;
One who gains two, a King;
One who gains three, Lord Protector;
One who gains four is exhausted;
One who gains five victories suffers calamity. |
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