In their article 'Hardball: Five Killer Strategies for Trouncing the Competition' in the April 2004 issue of Harvard Business Review, George Stalk, Jr. and Rob Lachenauer of the Boston Consulting Group (BCG) suggest that businesses drop the soft approach to competition and play rough instead.
The Hardball Manifesto prompts business to relearn the fundamental behaviors of winning:
- Focus relentlessly on competitive advantage
- Strive for "extreme" competitive advantage
- Avoid attacking directly
- Exploit people's will to win
- Know the caution zone
Stalk and Lachenauer suggest five strategies, that should be deployed in bursts of ruthless intensity:
- Devastate rivals' profit sanctuaries
- Plagiarize with pride
- Deceive the competition
- Unleash massive and overwhelming force
- Raise competitors' costs
This article came to mind when I read a newspaper article about the ruthless competition between DIY markets in the Netherlands. The five largest players in this market, Praxis, Gamma, Formido, Karwei and Hubo are ganging up against Hornbach, a German company that is expanding into the Dutch market. They appeal whenever Hornbach applies for a building permit, hoping to stave off increased competition or at least delay Honbach's entry into local markets. With every new location, which is on average four times as large as those of the other pleyers, Hornabach gains 1 percent marketshare. But although they have found a common enemy in Hornbach, these five players also frustrate eachothers' re-location and expansion plans, while the whole sector is involved in heavy price competition.
Hornbach fights back, however. It has six white trucks that drive past and park in front of its competitors outlets, carrying the slogan: "Nobody beats Hornbach!". Customers are welcomed to cash their discount coupons from Praxis, Gamma, Formido, Karwei and Hubo at Hornbach, in combination with a 'lowest price guarantee'.
So, it can be said that the fight is no longer just for the customer's favour, but that these DIY markets are playing hardball instead.
The Hardball Manifesto prompts business to relearn the fundamental behaviors of winning:
- Focus relentlessly on competitive advantage
- Strive for "extreme" competitive advantage
- Avoid attacking directly
- Exploit people's will to win
- Know the caution zone
Stalk and Lachenauer suggest five strategies, that should be deployed in bursts of ruthless intensity:
- Devastate rivals' profit sanctuaries
- Plagiarize with pride
- Deceive the competition
- Unleash massive and overwhelming force
- Raise competitors' costs
This article came to mind when I read a newspaper article about the ruthless competition between DIY markets in the Netherlands. The five largest players in this market, Praxis, Gamma, Formido, Karwei and Hubo are ganging up against Hornbach, a German company that is expanding into the Dutch market. They appeal whenever Hornbach applies for a building permit, hoping to stave off increased competition or at least delay Honbach's entry into local markets. With every new location, which is on average four times as large as those of the other pleyers, Hornabach gains 1 percent marketshare. But although they have found a common enemy in Hornbach, these five players also frustrate eachothers' re-location and expansion plans, while the whole sector is involved in heavy price competition.
Hornbach fights back, however. It has six white trucks that drive past and park in front of its competitors outlets, carrying the slogan: "Nobody beats Hornbach!". Customers are welcomed to cash their discount coupons from Praxis, Gamma, Formido, Karwei and Hubo at Hornbach, in combination with a 'lowest price guarantee'.
So, it can be said that the fight is no longer just for the customer's favour, but that these DIY markets are playing hardball instead.
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