Art%20of%20War

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22 S I N G A P O R E A C C O U N T A N T J U L Y / A U G U S T 2 0 0 4

C O V E R S T O R YC O V E R S T O R YC O V E R S T O R Y

Sun Zi Art of War: Be

Proactive, Ever Ready andDistance Yourself from

the Competitors

Sun Zi Art of War (Sun Zi Bingfa ) is the most

well-known Chinese military treatise among the Chinese

as well the western world. Reportedly written around the

4th B.C., its value in inuencing military thinking and war

strategies has seldom been questioned. What is more

interesting, however, is its relevance to the corporate

world. Increasingly, military clichs have been used in

the business realm and corporate boardrooms. Terms

like price wars, promotion wars, battle of the corporate

giants, etc. have found increasing acceptance and usage

among business writers and analysis. The aim of this

paper is to introduce readers to the value embedded in

ancient Chinese military philosophy like Sun Zi Art of War,

and how such philosophy can be applied to the realm

of marketing and corporate strategy. Given the richness

of the contents of Sun Zi Art of War, it is impossible to

provide a comprehensive treatment of his works. As such,

this paper has chosen to focus on two related concepts

of his writing - the need to be ready and proactive at all

times and to distance oneself from the competitors.

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Introduction

Military strategies have often appealed to corporate strategists.

The honouring of war heroes like Colin Powell and Norman

Schwarzkopf of the Persian Gulf War of 1991 and the hefty lecture

fees they command in the speaking circuits of the business world

attest to the popularity of applying military strategies and principles

to the business world. What is interesting to note is that much of

modern military thought might have been inspired by an ancient

Chinese military treatise, called Sun Zi Art of War. Written around

4th B.C., this highly regarded work is a must-read text among

most top military academies of the world, including those in the

United States. Indeed, Sun Zi Art of Warremains one of the most

inspiring books on military thought and philosophy that has oftenbeen associated with applications to business. Its contents have

commonly been cited by many businessmen in Asia and the west

who claimed great inspirations from the book.

With the growing economic importance of China, the interest

on things Chinese and understanding the mind of the Chinese

strategist will become increasingly popular. Chinese military classics

like Sun Zi Art of Warprovides a useful perspective in this aspect.

This paper hopes to contribute towards this understanding by

focusing on two related concepts of his writing - the need to be

ready and proactive at all times and to distance oneself from the

competitors. How these concepts are used in war, and how it can

be similarly applied to business are illustrated. To promote better

understanding of the philosophy of Sun Zi, his original writings

are quoted withhanyu pinyin ( ), the commonly accepted

romanised and phonetic version of pronouncing Chinese

characters, are included in the paper as well.

The Quest For Dominance

In war, one of the driving motivations behind any army is to

dominate its enemies decisively so that none of them can pose any

serious threat to it. This philosophy for dominance has been clearly

articulated by Sun Zi in his Chapter 11 on the Nine Battlegrounds(jiu di ) when he described the power of the supreme

commander or emperor as follows:

Fu ba wang zhi bing, fa da guo, ze qi zhong bu de ju

When a supreme emperor (commander) attacks a large state,

he ensures that it is impossible for the enemy to assemble all his

forces against him.

Wee Chow Hou

Wei jia yu di, ze qi jiao bu de he

He will overpower his enemy convincingly and overawe the other

states so much that none of the allies (of his enemy) would dare

unite against him.

Shi gu bu zheng tian xia zhi jiao, bu yang tian xia zhi quan

Thus, he (the supreme emperor) does not have to contend with

securing alliances with other states. He does not have to foster nor

cultivate the power of other states.

Xin yi zhi si, wei jia yu di gu qi cheng ke ba, qi guo ke hui

Rather, he relies on his supreme ability to overpower the enemy

to achieve his own agenda and goals. Thus, he is able to conquer

cities and overthrow the states of his enemies.

Note that the supreme emperor (ba wang ) did not even

have to enter into strategic alliances with his enemies. He was so

powerful that his mighty army alone would overawe all his enemies1.

Of course, the position of the supreme emperor (ba wang )

reects the ideal state or goal that an ambitious military commander

would seek to achieve. In reality, no matter how ambitious an army

may be, it will always have to contend with counter forces that

will challenge its position. Moreover, not every army can be in the

commanding position all the time. For example, the British used to

be a very powerful nation, especially in the 18th and 19th centuries.

It colonised many countries, including Australia, Canada and New

Zealand. It was so domineering that it called itself the Great Britain,

and it created the Commonwealth countries. However, by the end

of the 20th century, its inuence gradually waned. Many of its former

colonies broke away to become independent nations. By the 21st

century, it could hardly be called the Great Britain anymore.

Competition in the business world is very similar to that of

the military realm. Given any opportunity, a company will seek to

dominate or even monopolise the whole industry. Yet, the nature

of competition plus the intervention of regulatory controls are such

that a company will always have to contend with various direct and

indirect competitors. While it may lead the industry for a while, its

position can never be assured as many of its competitors will

1 In the modern world, despite its dominant military power at the turn of the 21stcentury, the United States has yet to achieve the status of the supreme

emperor. It still has to rely on its strategic political and military partners, and cannot go about to conduct its affairs without taking into account the

reactions of other nations around the world. A good example was the case of its attempt to attack Iraq in late 2002. It began seeking the support of its

allies and the United Nations as early as July/August 2002, and it presented all kinds of reasons and excuses for the attack. Not surprisingly, it met with

much resistance from the rest of the world, especially from the Arabic and Islamic countries. Only Britain stood rmly behind the United States and no

attack was launched by the United States as of early December 2002.

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constantly seek to dislodge its leadership. Moreover, changes in

market conditions, consumer tastes and preferences, technology,

and many other factors could also threaten its ability to stay ahead

of its competitors all the time.

Take the case of the personal computer (PC) industry. While

Dell Computers remained the number one PC company in the

United States as of mid-2002, its worldwide leadership position was

dislodged as a result of the merger between Hewlett Packard (HP)

and Compaq earlier in that year. If anything, competition between

the two giants had become more intense than ever. For example,

in August 2002, Dell announced plans to market unbranded

(generic) PCs through dealers and to enter the lucrative printers

and handheld computers (like the palm-tops) markets. Printers

and handheld computers were the traditional markets and forte ofHP. By making plans to enter these markets, Dell was effectively

declaring war against HP. Of course, HP promptly returned salvo

against Dell. The president of HP, Michael Capellas, announced

later in that same month that HP would target its sales efforts at

direct sales to customers, the traditional domain and forte of Dell.

Clearly, these two dominant PC players are going after each other

and the competition is likely to intensify in the years ahead.

Be Proactive at All Times and Situations

How then can an army or a business outt remain competitive so as

not to enter the history book? How can it ensure that its leadership

or competitive position will not be threatened? More importantly,

what kind of competitive stance or posture should it take in order to

ensure that it does not fall into a state of complacency? These are

all important issues that need to be addressed.

Effective military doctrine dictates that the best way to deter any

attacks from the enemy is to have a very strong force for offence

as well as for defense. This would include having strong military

equipment and ring power, well-trained troops and preferably, a

larger army2 too. When war breaks out between two contesting

armies, one must never rely on the failure of the enemy to attack him.

Instead, one must be ever ready to engage the enemy.

Similarly, one must also build an invincible defense such that

the enemy would not even dare to mount any attack. Even if the

enemy dares to do so, he will have to pay a high price for it. In

other words, whether in offence or defense, there is a need to

adopt a very proactive stance. For example, to attack successfully,

one must know the disposition and layout of the defenses of the

enemy, his strengths and weaknesses, state of combat-readiness,

etc. To defend successfully, one must be able to predict accurately

where the enemy is likely to attack. In this way, one can build a

defense that is so strong that the enemy would not even dare

to contemplate an attack. The need to be proactive had been

expressed in many parts ofSun Zi Bingfa ( ). In this paper,

I like to focus on what Sun Zi said in his Chapter 8 on Variations and

Adaptability(jiu bian ):

Gu yong bing zhi fa, wu shi qi bu lai, shi wu you yi dai ye

Thus, in the conduct of war, one must not rely on the failure of the

enemy to come, but on the readiness of oneself to engage him.

Wu shi qi bu gong, shi wu you suo bu ke gong ye

One must not rely on the failure of the enemy to attack, but on the

ability of oneself to build an invincible defense that is invulnerable

to attacks.

To excel in war, one has to be proactive so as to be ahead of

the enemy at every move. It is very important to emphasise that in

the realm of the military, the army must always maintain a highly

vigilant state of combat-readiness. As appropriately pointed out

by Sun Zi, one cannot rely on the future of the enemy to attack us.

Instead, one must be ever-readyto take on the enemy. Even when

there is no war, troops are trained to the highest level of combat-

tness and readiness inpeacetime. In fact, it is during peacetime

that the army can seize on the opportunity to build up its resources

so as to act as a deterrent to any hostile move by the enemy. The

following Chinese saying sums up this point well:

Lian bing qian ri, yong bing yi ke

Troops are trained for thousands of days for a moment of

engagement.

This need to be combat-ready all the time is well understood

by any military commander. By being proactive, he is able not only

to gain the initiative, but will have ample time and opportunity to

deal with the enemy. In other words, he will have more options

and can respond more rationally and effectively under almost

all circumstances. Moreover, when he has the upper hand, his

enemy will always have to be wary of him and be forced into taking

a defensive stance. On the other hand, if he adopts a reactive

posture, he can be lured into a false state of security as non-conict

or non-hostility does not mean that the enemy is not secretly

preparing to go on the offensive against him. More seriously, when

pressured under the constraint of time, he is unlikely to come up

with effective strategies. In fact, he will be under severe stress,

resulting in tension and even disunity within his rank-and-le. In

the worst case scenario, he could even be overthrown by his own

people and / or troops.


2 In war, while the size of the army (that is, numerical superiority) will provide some denite advantages, it is not sufcient to guarantee victory.

What is more important is the quality of the troops and weaponry. This is where training becomes important. This point is emphasised in the Chapter

on Mastering Points-of-Contact under the discussion on Relative Superiority.

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Understand the Need to be Proactive and

Combat-Ready

The need to be proactive and combat-ready all the time is

readily understood and grasped by any shrewd military general.

The same, however, cannot be said about its applications in the

business realm. In my many years of teaching this subject to

thousands of executives around the world, many of them still fail to

comprehend the subtlety and implications behind the sayings by

Sun Zi. Let me illustrate with the kinds of questions that I posed to

my past course participants, beginning with an easy one.

If your company is ranked, say, number two, three or four in

prots, market share, service quality or some other dimension in the

industry, a particular market, or product/service area, what would

your goal or ambition be? The obvious answer, of course, is thatyou would want to be the number one, especially if your company

has the capability of doing so. Any forward-looking and ambitious

company would denitely aspire to become number one in market

share, prots, service, quality image, etc. In fact, if it can and is

able to be number one on all these dimensions, it would want to

dominate them all.

Now, what if you are already the number one, say in market

share, prots, image, service quality or a combination of these

aspects? What would your next goal or objective be? This is where I

often got very interesting responses from executives whom I lectured

to around the world. The following are some typical answers:

1. Defend the number one position.

2. Protect the number one position (whether this is in terms of

prots, market share or some other criteria).

3. Guard against the competitors.

4. Maintain the leadership position.

5. Sustain the number one position.

6. Try to remain as number one.

7. Stay number one3.

Now, if you happen to provide one of the above responses, letme say that you are only half-right. By saying half-right, I mean you

are half wrong and your answer is incomplete! This is because all

the above answers are passive, defensive and reactive responses!

In actual fact, being number one, you are effectively the leader. As

a leader, your main role is to lead. However, if you have a passive,

defensive and reactive mindset, you are likely to end up behaving

likewise, that is, following instead of leading. This effectively

violates the sayings as advocated by Sun Zi. Let me illustrate with

an example.

I was once called in by a company for some training cum

consulting assignment. This company was in a business whereby

the nature of the product was fairlyhomogeneous. As such, it

was difcult to differentiate the product among competitors, and

consumers tended to be attracted by the lowest price offered.

The industry was also oligopolistic in nature (that is, only a few

players). This company had the largest market share, and hence

was theindustry leader4. Interestingly, the other competitors in

the industry would occasionally harass the leader by taking turns

to drop their prices by a few percentage points. This went on for

some time. Each time when one of the smaller players dropped its

price, the industry leader would call its own meeting to decide on

counter strategies. Unfortunately, the corporate executives were

too concerned about defending and protecting their market share

and customers that they forgot how to lead anymore! They behavedalong the seven responses highlighted earlier. As a result, each

time when one of the smaller players dropped its price, the industry

also decided to drop the price by the same margin. What had

happened? The leader had become a follower!

Fortunately, it did not take me too long to convince the

company that as an industry leader, it is its role tolead the industry

up and to lead the industry down if necessary. To put it bluntly

and brutally, if the smaller players want to commit commercial

suicide, the industry leader should oblige them by conducting their

corporate funerals rst. Of course, my advice to them was not that

devastating. Instead, we decided to teach the smaller players a

lesson, and then to lead them back into protability again. This was

what happened.

The next time around when one of the smaller players decided

to drop price, the leader announced a substantially larger price

drop. In the past, it would simply match the drop. At the same

time, it leaked information to the industry that should any of the

smaller players decide to match its price drop, it would drop it even

further. Suddenly, all the other smaller players realised that they had

annoyed the giant who had awakened. All the industry players took

the words of the leader seriously, as any further aggravation of the

price war would denitely cause the demise of the smaller players

and favour the biggest player.

This logic is not difcult to understand. In an oligopolistic

industry where the product is fairly homogeneous, economies

of scale typically favours the biggest player, that is, the biggest

player has the lowest cost of production (see footnote 4). More

importantly, if one of the smaller players exits the market, its market

share will be distributed among the remaining players. All things

being equal, it is likely to favour the biggest player as it probably

3 Of course, at times, I do get other extreme answers like kill the number two and eliminate all competitors. These answers, to my mind, are rather

ruthless and questionable responses in the realm of business competition and are likely to evoke strong reactions from any commentator and critic.

4 It is important to point out that in such a market situation, economies of scale will always favour the biggest competitor. As such, it enjoys great cost

advantage and has more leeway to lower price in order to take advantage of the price-sensitive consumers.

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has the largest distribution outlets. When this happens, its (the

biggest player) cost curve will be pushed down further and its

competitiveness enhanced.

Having taught the smaller players a lesson, the industry leader

then decided to lead them back into protability. It announced a

price increase of about 10 per cent that would only take effect

about one month after the date of announcement. This move was

strategic. It was a way of signalling to the rest of the industry players

about the intention to lead them out of the woods. Should the

other players choose not to follow, the leader would still have ample

time to change his mind closer to the date of implementation.

Not surprisingly, all the other industry players announced similar

price increases to be effected at the same date, all within a few

days after the announcement by the leader. After been disciplined,they were in fact, waiting for the leader to make the rst move.

The above example illustrates the behaviour of companies

in industries like retail gasoline where the product is basically

homogeneous and the industry is served by a few players (that is, an

oligopolistic market structure). Typically, within a particular market, the

leading producer would dominate by virtue of its size and extensive

distribution outlets. It is very difcult for the smaller players to wage

an open price war against the leader. This is because they risk being

clobbered by the leader. The retail gasoline industry in Singapore

is a good illustration. Few of the smaller players (e.g. Caltex, British

Petroleum and Exxon) would like to take on Shell directly on a price

war. This is because the market share of Shell is more than double

that of its nearest rival at any one time.

It is true that for global companies like Shell, Caltex, British

Petroleum and Exxon, they can still wage price wars within a

particular market or region by adopting a cross-subsidy strategy in

order to buy into market share. However, there is still a limit to its

success. This is because each market or region must still account

for its bottom line in the medium and long run. While some losses

may be acceptable in the short run, no other market or region is

prepared to subsidise another one on a long term basis.

The Need for Distancing

What then should the appropriate answer be if you are already

the number one? Of course, in war, you can seek to destroy your

enemies. In business, however, you do not actively go about

destroying the competitors. This would project the company as very

ruthless and without moral principles. However, while you may not

go about destroying your business competitors, it does not mean

MICROBIT

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that they do not aspire to put you out-of-business. Without doubt,

many companies would wish that there are fewer and weaker

competitors around. In this way, they would not have to work so

hard for their market shares and prots!

Instead of destroying the competitors, a more appropriate stance

would be for the leader to distance itself from the competitors5.

By distancing itself from the rest of the eld, it would be harder

and harder for the competitors to catch up. In fact, if the gap

becomes too big, the competitors may even give up chasing! More

importantly, the concept of distancing can be applied to a company

even if it may not be in the number one position. For example, if a

company is in the number two position, its goal would be to catch

up and overtake the number one. However, it is equally important

that it distances itself from the rest of the competitors. In this way, it isassured of the runner-up position while going for the champion!

Interestingly, there are several reasons why it is so important to

distance oneself from the rest. Let me illustrate with the game of

basketball. When the score is 62 to 60, 74 to 72, 86 to 84, and so

on (that is, the difference between the two teams is only two points

apart), what would your answers be to the following questions:

1. Which team do you think will be under greater stress?

2. Which team is more willing to take risks?

3. Which team will be afraid of making mistakes?

4. Which team is likely to be more innovative and creative?

Think of the answers carefully. Not surprisingly, many of you will

say that the team that is behind by only two points is likely to be

more willing to take risks and to innovate. Conversely, the team that

is marginally ahead is more afraid to make mistakes, is less willing

to take risks, and is under more stress and tension! The logic is very

simple. The guy behind is too close for comfort! As a result, the

team that is leading is forced to take a more conservative posture to

defend its position.

This is where the irony lies. To be a leader, there is a need to

continue to innovate and be creative. This implies the necessity

to take risks and the ability to tolerate and accommodate

mistakes. Only then can the people in the organisation be willing to

experiment, develop new ideas and concepts. All these can ourish

much better if the organisation has enough capital and bufferto

do so. This is where distancing becomes so crucial. It allows the

leading company to have sufcient breathing space to develop new

ideas and innovations, and accomplish them with minimal tension

and stress. In other words, the greater the space, the greater is the

freedom to carry out innovative and creative works without fear of

making mistakes. This, in turn, will spur greater willingness to think

and act outside the box. The whole process moves like a vicious

cycle, each propelling and spiralling the development of the other.

It is a very simple, yet powerful concept that only the enlightened

companies are able to master it.

On the other hand, when the gap over the competitors is very

narrow, the leading company actually becomes vulnerable by

default. This is because when the gap is very narrow, it becomes a

most logical, achievable and acceptable target for the competitors

to take it down. Not only that, when the margin is very narrow, it

becomes a motivating factor to the competitors. This is because

they will be red and charged up even more to take down the

leader as winning is clearly within reach. Indeed, in business

competition, the most regrettable situation is to provide motivationto the competitors.

Table 1 provides a list of contrasting leadership behaviour that

are likely to affect any company. Clearly, when a company is in

a leadership position, it should always attempt to widen its gap

over its competitors if it wants to become even more successful.

In fact, when the gap is very wide, the competitors may be so

demoralised that they are forced to be contented to remain as

followers. Not surprisingly, those companies who know how to

master the concept of distancing will never cease to expand its

leadership position even further. The quest to become even bigger

by corporate giants like Microsoft, Intel, Dell Computers and many

others may also become easier to understand once readers can

grasp the inherent power of distancing.

How To Distance Oneself From The Competitors?

Having understood the need for distancing, how does a company

go about doing it? Of course, when such a company is not in the

leadership position, it can always learn from those who are ahead

of it. However, if the company is already in the leading position,

where and who else can it learn from? Let me venture to say that

it can learn from many sources. In fact, there is no limit to learning

if one has the right attitude. This is captured by the following

Chinese saying:

Dang ni xiang xue xi de shi hou, lao shi zi ran hui chu xian

When you (the student) is ready to learn, the teacher will

appear naturally.

Indeed, there are many ways in which a company can learn.

The following are some examples.

5 Distancing, as used here, refers more to the widening of the gap between the leader and its competitors in the market place. Within a company,

the leader (for example, the managing director or chief executive ofcer) should never attempt to widen his gap over his potential successors and

subordinates. Such a behaviour would be undesirable for teamwork and will affect overall corporate performance. Just like in war where a general

cannot win a war without the backing of his troops, no corporate leader can win business wars without the strong support of his rank-and-le.

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Table 1: Contrasting Leadership Behaviour

The result was that KFC had over the years introduced menu items

that were popular with the Chinese population. These included

Chinese-style vegetable soups, porridge and other dishes that cater

to the local taste buds7.

Interestingly, KFC was not alone in doing this. In Hong Kong,

McDonald's introduced McRice meals8 in July 2002 that caused

great unhappiness among the small restaurants and local food

operators. In contrast to the western fast food chains, the local

food operators in many Asian economies have been very slow to

learn from them, especially in the realm of marketing, management

and innovation. As a result, when McDonald's introduced McRice

meals in July 2002, many small local Chinese restaurants and food

operators cried foul. They could only complain when such things

happened, but did little to improve their modes of operations over

the years. Ironically, it is generally acknowledged that these local

small Chinese restaurants and operators actually provide better

quality and tastier food that suit the local palate. What they lack aremanagement and marketing skills and knowledge. Fortunately, the

larger local food operators have begun to respond more decisively

by learning from these western fast food chains. For example, air-

conditioned local food courts have begun to appear and compete

directly with these western fast food chains in major Asian cities of

Singapore, Hong Kong and Taipei.

In the case of China, local fast food operators have also begun

to emerge since the late 1990s. The more notable ones include Da

Niang Dumpling (da niang jiao zi ), Peking Duck (bei jing

kao ya ), Ma Lan Noodles (ma lan la mian )

Learn From Direct and Indirect Competitors

For a company that is in a leadership position, the temptation is to

look down on its competitors. This, precisely, is the kind of mistake

that it should never make. Arrogance typically comes before a fall,

as depicted by the following Chinese saying:

Jiao bing bi bai

A proud and arrogant army is bound to face defeat.

Instead, a company should maintain a positive attitude towards

learning:

Ju shang er bu jiao

When one is at the top, one should not be arrogant.

This is because there are still useful lessons that can be learnedfrom direct competitors who may be smaller but more agile and

adaptive. Take the case of Kentucky Fried Chicken (KFC) in China.

Since opening its rst branch in Beijing in 1987, it had expanded

tremendously over the years. It opened its 700th restaurant in

Shenzhen in late September 2002, and was the largest foreign fast

food chain in China. In fact, it led the other western fast food chains

in China by a very comfortable margin6. One would be tempted to

think that given its great success, it would have very little to learn

from its competitors, especially from the small local Chinese food

operators. However, KFC did not rest on its laurels. Instead, it

sought to learn from the product offerings of smaller food operators.

WHEN LEADERSHIP GAP IS NARROW WHEN LEADERSHIP GAP IS WIDE

1. Forced to guard against competitors Competitors are wary of moves by leader

2. Limited economies of scale Great economies of scale

3. Cannot afford to take high risks Can afford to take high risks

4. Can become conservative and less innovative More scope for innovation and creativity

5. Under stress from competitors Stress is more self-induced

6. Afraid to make mistakes Great leeway to accommodate mistakes

7. Tend to use more tactics Time to plan and strategise

8. Tend to be reactive and defensive Can be proactive and be on the offensive

9. Forced to take more short term measures Able to take long term perspectives

10. Can be harassed by the competitors Can demoralise the competitors

11. Less market and lobbying power More market and lobbying power

12. Difcult to dictate nor set the market trends Able to dictate and set the market trends

6 McDonald's was ranked second as of September 2002, and had about 500 outlets in China.

7 Clearly, such dishes were also in response to customers needs and wants.

8 These were basically local-style rice dishes that came with some vegetables and meat.

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and King of Noodles (mian dian wang )9. While modest in

their beginnings, these Chinese fast food operators are starting to

pose some creditable challenges to the western fast food chains.

However, they still have a long way to go, and much can still be

learned from their western counterparts, especially in the realm of

innovative marketing and effective management of product quality,

production systems and procedures.

Useful ideas can be gained from indirect competitors as

well. Take the logistics industry as an example. Today, logistics

companies compete against the traditional shipping and

transportation companies on the one hand and the more modern

courier companies on the other hand. Shipping and transportation

companies are equipment heavy and excel in managing at the

ports of call and movement of bulky and large volume items. Timeis important but not in terms of speed of movement. It is more in

terms of consistency of scheduled arrivals and departures. Cost

is also an area of high concern as the margins are thin. As such,

utilisation and deployment of assets are keys to its success.

Courier companies, on the other hand, excel in documentation,

information technology and the movement of small, high value and

low volume items. Time, in terms of speed of delivery, is critical as

a competitive factor. Their businesses tend to focus more on higher

margin deliveries on a door-to-door basis.

Interestingly, the logistics business has grown tremendously

over the last 10 years largely by learning from the courier, shipping

and transportation companies. Its growth was largely by integrating

the best of both approaches to solving the delivery problem.

Not surprisingly, an increasing number of shipping and courier

companies are now expanding into the logistics business as well.

Here, I must point out that learning from direct and indirect

competitors is not conned to learning about the good practices

only. At times, valuable lessons can be gained by understanding

the mistakes made by competitors too. In this way, one can avoid

the same pitfalls. More importantly, learning from the mistakes

and pitfalls of the competitors will enable a company to nd new

ways and / or alternative ways and methods to compete. In fact,

it will help the company to think outside the box. Let me illustrate

with an example of the housing mortgage war that erupted among

banks in Singapore in 2002. Many banks took the direct approach

of competing merely on mortgage rates. This approach was very

direct and allowed the consumer to make comparisons, and hence

to shop for better rates from one bank to another. Not surprisingly,

it created a downward spiralling effect, forcing the banks to reduce

their rates even further. One bank even offered a rate as low as

1.33% per annum on a monthly declining balance basis.

Having learned from the competitors, two foreign banks,

namely Standard Chartered Bank and Citibank, chose to compete

differently by focusing on special deals to each individual customer.

Citibank, for example, offered cash rebates and discounts, including

interest-free renovation loans, high yield current accounts to

offset the higher mortgage rates and other benets that effectively

reduced the cost of borrowing. Standard Chartered Bank, on the

other hand, offered interest rates on deposits that were similar to

that of the mortgage rate charged to the customer10. By taking

such approaches, these two banks avoided been drawn into direct

comparison with the mortgage rates offered by other banks. It also

enabled them to sell their packages differently as well as to provide

strong differentation and customisation of their offers according to

the needs of their customers. By varying their competitive tactics,

these two banks managed to hold on to their market sharesextremely well.

Learn From Other Industries and Businesses

Learning from other industries and businesses is another way to

get ideas to distance oneself from the competitors. This is because

many practices used in one industry can be adapted or be applied

to another industry as well. The hospital industry is a case in point.

For many years now, the top-end hospitals have adopted many

practices used in ve-star hotels. Today, a top-end hospital boasts

of having valet parking, in-house movies, customised menus, ne

dining outlets, high quality shops, personalised check-ins, payment

by credit cards, etc. These facilities and services are similar to that

provided by a ve-star hotel.

Similarly, Acer Computer, a leading company from Asia, learned

its inventory control practices through studying the system used

by McDonald's. This may seem odd, considering the differences

between Acer and McDonald's. What can a mature, ordinary,

western fast food chain teach a fast growing, relatively high

technology rm based in Asia? The truth was, it did, and this brings

to mind another interesting Chinese saying:

Zhi ji zhi duan, bu yan ren zhi chang

Be conscious of your own shortcomings and never scorn the

strengths of others.

Indeed, different kinds of businesses will have their unique

and perhaps strong modes of operations or business practices

that can inspire others. One should never overlook them. With the

great access to information (for example, through the Internet and

web-based databases) and availability of technology, it has become

easier to learn from others. Moreover, the boundaries of competition

across products and industries have also become blurred as a

9 The names are translated. Da Niang originated from Jiangsu Province, Peking Duck and Ma Lan originated from Beijing, while the King of Noodles

started in Shenzhen.

10 Supercially, this seemed to imply that the customer was paying zero interest rate on the mortgage. In reality, this was not the case as the size of the

mortgage loan taken out by the average customer would always be many times larger than the amount of deposit that he/she had with the bank.

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result of technology and the multi-disciplinary nature of businesses

today. Take the case of Dell Computers. Its computer is made up

of parts and components supplied by everyone else. Its success is

not dependent on research and development nor manufacturing.

Yet, it is able to build up a world class company. Its components

and parts are outsourced, but it has a sophisticated information

management system that manages both the supply and demand

side of its business, and it ensures speedy and timely delivery

of its highly customised products to a mass market! Its model

also has strong elements of direct marketing tactics and efcient

management of nancial cash ow and payments. Clearly, the Dell

model contains many useful lessons for other businesses.

Another insightful example of how a company learned from other

businesses is the case of 7-Eleven, an international conveniencestore chain, in Hong Kong. Realising that McDonalds managed to

attract a good following of local customers with its McRice Meals

that were priced at HK$22, 7-Eleven decided to enter this market

with a more aggressive strategy. It launched seven different kinds of

lunch box meals at a price of HK$15 to HK$16 each11 in

October 2002. There were other reasons for 7-Eleven to get into

the local eatery business, despite being a traditional grocery store.

The economy of Hong Kong had remained weak as of 2002 and

there were pressures to increase its revenue base. More importantly,

7-Eleven stores were located conveniently all over Hong Kong in

very high trafc areas. By packing the meals into lunch boxes, they

became easy take-away items like any convenient product.

To differentiate itself from other food operators, 7-Eleven claimed

that its lunch box meals were healthier than others, and even

placed the calorie count of each meal on its box label. Certainly,

not only did 7-Eleven learn from other businesses, it also provided

some useful lessons for others to learn from it too.

Learn From Own Employees

Employees, especially those in sales, customer service, and delivery

are often in close contacts with customers and the market. As a

result, they have over the course of their dealings, a rich pool of

knowledge on how the products and/or services are received by

11 In fact, the lunch box meals were launched at a promotional price of HK$10 each for a two-week period from 1stOctober 2002. It also sold the lunch

box meals at hefty discounts of up to 50% after 3 pm each day. This hefty price discount is also a sales tactic that is commonly practiced by the

bakery section of large supermarkets and hotels to remove its end-of-day items that have short shelf lives.

REALTIMME

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the customers. In addition, they probably have intimate information

on competitive products and services too. They form a valuable

pool of resources awaiting to be tapped. When deployed effectively,

they could also be used to nd out more information about the

changing tastes and preferences of existing customers as well as to

gather business intelligence on the competitors too. The challenge,

however, is that the top management of the company must realise

that such a great potential exists, and they must be humble enough

to learn from and through their own subordinates, as reected by

the following Chinese saying:

Bu chi xia wen

There is no shame in learning from people who are junior to us.

In fact, one of the most effective ways that a company can

benet from its employees is to use them as agents to collect

market information on its products, services, competitors, and other

market feedback directly from the customers. The sales people are

one such potential pool of information gathering agents. Instead

of hounding them day and night to meet sales quota, a company

should also consider how it can use them to get closer to its

customers. To motivate them to do so, the performance evaluation

of the sales people can include an additional criterion such as

What new or additional things have you learned from the clients

during the last or past few visits. In addition, the sales people

can be made to share such information openly at sales meetings.

They can then be rewarded according to the type and value of

information that can be implemented in ways that help increase the

sales and service performances of the company.

This seemingly naive and simple question about What new

things/lessons have you learned from the clients, can yield

surprising results. For example, when trying to learn more about

the needs and requirements of the customers, the sales people

will inevitably nd out more information about the strengths and

weaknesses of their products and services as well as those of the

competitors. They may even be able to obtain valuable feedback

about market conditions and trends. More importantly, when the

sales people are able to share information among themselves, they

are also promoting learning and teamwork within the company.

As a result of sharing and learning, motivation and morale of the

sales team will also be further reinforced. The result is that sales

may be increased while achieving a higher level of customer sales

satisfaction. These are all positive outcomes for the image and

reputation of the company.

Learn From Consumers and Users

Consumers and users of products and services provide anotherrich source to obtain ideas on how to improve and distance

oneself from the competitors. After all, a company exists to cater

to the needs of consumers, and as such it should always attempt

to address their needs, tastes and preferences. While not every

consumer will provide the best idea, sampling a cross section of

them through skilfully conducted market research can reveal very

useful information. This willingness to learn from everyone, including

the consumers, is like the following Chinese saying:

San ren xing bi you wo shi

When I walk in the company of three people, there is surely a

teacher among them.

Any marketing-oriented company will know that its customers

form the key to its success and provide the lifeline to its business.

Today, an increasing number of companies are trying to nd out

more about their customers through data-mining, surveys, focus

group interviews, and other means. Their aim is to nd ways toserve their customers better as well as to nd ways to differentiate

their product / service offerings from their competitors.

Let me cite two examples on how leading companies learn from

their users and customers. The rst one is Singapore Airlines (SIA).

In mid-2002, SIA did something very unusual. It conducted a series

of meal tasting tests among very young children who ew on its

airlines. The purpose was to nd the meals that are most suitable

and palatable to young children. This was because SIA discovered

that its frequent yers include young children and the number

has been increasing over the years. As a leading airline, it was

determined to nd ways to distance itself from the offerings of its

competitors. Catering to the taste buds of young children becomes

another competitive means to achieve this objective.

The Civil Aviation Authority of Singapore (CAAS) is another

world class organisation that has won countless awards for its

management of the Changi International Airport. Like SIA, it has

been consistently rated as the best in its class by numerous

international bodies. However, CAAS is not contented to rest on

its laurels. As of 2002, it had developed mass rapid transit (MRT)

connection right to its terminals.

More importantly, as of 2002, CAAS had already nalised plans

to build a third terminal despite the fact that its current two terminals

were more than adequate to handle the volume of trafc for many

more years. The building of a third terminal is part of its quest

to provide even better services and to distance itself from other

international airports. Many of the new features to be incorporated

in the third terminal have been the result of feedback by users of the

airport. At the same time, improvements to the existing two terminals

are made regularly. The challenge of being in the leadership position

can be very onerous. While SIA and CAAS may be highly respected

by their competitors, the users/customers and the market, they donot rest on their laurels. They know that such accolades do not mean

that they are immune from making mistakes. They can still risk being

dislodged by their competitors. As such, they have consistently

attempted to learn from others, including from their users. In fact,


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they are known to conduct surveys and interviews with their users

frequently. They do so because they are not contented with just being

the number one, nor are they satised with merely protecting and

maintaining their existing status. Rather, they are always striving to

distance themselves from the rest of the eld.

Learn From Channel and Distribution Members

By now, readers will know that no leader or leading company is

immune from making mistakes. To avoid making mistakes and

to improve continuously, one has to learn from as many sources

as possible. This includes learning from distribution and channel

members.

The following Chinese saying puts it well:

Zhi zhe qian l, bi you yi shi

Even the wise are not always free from error.

For companies who rely on various kinds of distribution

channels to reach out to the consumers, the channel members are

another important source to solicit and obtain valuable ideas and

inputs. The value of channel member can be easily illustrated in the

retail business. Very often, a good salesman can change the brand

of the product that a customer wants to buy at the point of sale

despite the fact that he may be carrying that brand. This is because

he understands the needs and wants of the customer, and is able

to inuence the purchase decision. What this means is that he is in

a much stronger position than the manufacturer in inuencing the

decision of the consumer.

Not surprisingly, the more enlightened companies have

developed very strong relationships with their dealers and agents.

They realise that dealers and agents not only can help them to

market their products and brands, but can push them harder over

competitive products and brands too. A good example is the story

of how the Japanese luxury car, Lexus, managed to penetrate

successfully into the U.S market in the 1980s against the very

established continental brands like Mercedes, BMW and Jaguar.

Among other reasons for its success, the role played by the dealers

was often cited as a major factor.

There is an interesting trend that has emerged in the more

developed economies of Asia, and this concerns the marketing

of house brands. Despite its successes in the west among

supermarket and departmental store businesses12, house brands

had never taken off in economies like Japan, Hong Kong, Taiwan

and Singapore. However, house brands showed possible signs

of acceptance in recent years for several reasons. Firstly, theeconomic downturn and recession played a big part in the

rationalisation of purchases by Asian consumers. Instead of paying

a high price premium for branded products, they are more willing

to scale back their expenses on items where product quality has

become very high and standardised. Secondly, more established

retailers such as Marks & Spencer, well-known for its own house

brands, entered the Asian market. Some local retailers had also

grown bigger with strong market presence. As a result, house

brands are no longer perceived as low quality products. Thirdly, and

which I think is a very important factor, is that these retailers have

taken a different route in the creation and development of their own

house brands, something that the original brand manufacturers

should take notice of and learn from them accordingly. Let me

explain with the case of Singapore.

House brands used to be rejected by the average Singaporean

consumer 10 years ago. However, it is no longer the case. This isevidenced by the fact that NTUC FairPrice, the largest supermarket

chain in Singapore, doubled the number of its products that carry

its house brands from 200 in 1997 to 400 in 2002. Guardian, a

pharmacy chain store, increased its house brand products by ve

times within a two year period to 250 as of 2002. Cold Storage,

another supermarket chain also had several hundred house brand

products. Other than the reasons mentioned earlier, the strategies

taken by these retailers are useful lessons for the manufacturers of

the traditional branded products.

To begin with, these retailers which are now big players, take an

active interest not only in sourcing their products, but in determining

their quality as well. Some of them are known to work closely with

their suppliers/manufacturers who lack the resources to develop

their own brands. In addition, more attention are now paid to the

packaging of the products. They now come in equally attractive

and high quality packaging just like traditional branded products.

More interestingly, some of these retailers even develop their own

brands that do not carry the name of the store. For example, Cold

Storage used a brand name First Choice for some of its house

brands. It even developed a very popular brand, French Cellers, for

its wine collection. Some products by Guardian are marketed under

the brand of Angel. These retailers also promote their house brand

products very aggressively through media advertising.

As a result of such efforts, the quality and image of house

brands have improved substantially over the past few years. With

more discerning consumers who are able to appreciate that quality

need not come at higher prices and who have high condence in

reputation of these established retailers, these relatively cheaper

house brands have been making increasing penetration into the

traditional brands. These are precious lessons that manufacturers of

branded goods cannot afford to ignore.

Learn From Consultants and Trainers

Readers may be interested to know that in ancient China, the

12 A good example is that of Marks & Spencer which has a very well developed in-house line of products that are marketed under its own

stores worldwide.

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employment of foreign talents (ke qing ) was commonly

practiced. These foreign talents were actually non-native ofcials

who were employed in various advisory roles and positions, such as

military consultants, advisors, and trainers. Sun Zi mentioned such

appointments in his Chapter 2 on Waging War(zuo zhan ).

In the same way, a company must be willing to learn from

external and independentparties like business consultants and

trainers. Unlike customers, dealers and agents who typically

have vested interests in what they suggest, consultants and

trainers do not carry such baggage. They do not have to please

the company, especially if their services are well demanded by

other businesses. As such, their views may be more candid,

provocative and unbiased.

Even if consultants and trainers do have some vested interests,

it is still worthwhile listening to them, as reected by the following

Chinese saying:

Jian ting ze ming, pian xin ze an

Listen to many points of views and you will be enlightened. Biased

beliefs based on a one-sided view will lead to disaster.

When a good consultant is engaged, his views can be very

valuable. This is because his exposure to many companies and

industries can bring valuable insights that unlock the blind spots

of any company. Earlier, it was mentioned that a leading company

should learn from indirect competitors and other businesses and

industries. This is where a good consultant can provide that useful

bridge to shorten the learning curve and to provide different

ideas and approaches. It is a contribution, if tapped, can be of

immense value.

Learn From The Past

In this modern world of high technology, internet, biosciences and

genetic engineering, it is very tempting to dismiss any lessons that

one can learn from the past. Yet, the following Chinese saying is

worth noting:

Qian shi bu wang, hou shi zhi shi

If one does not forget the events of the past, they can become

valuable lessons for future situations.

Indeed, interesting ideas can be culled from the past. Old

concepts can be resurrected and re-packaged differently to bring

back the touch of nostalgia, and even to provide the needed edge

to distance onself from the competitors. The fashion and movie

industries are good examples. Typically, colours, patterns, cuts and

designs go through cycles in the fashion industry. What is hype

today will be cast in the shadow. Yet, what is considered as long

gone may make surprising comebacks as new fashion. Similarly,

with new sound and colour technology, many old movies have been

given new leases of life.

Interestingly, many of the best museums in the world thrive on

exhibiting things and artifacts of the past. One such museum that

opened to enthusiastic response in Washington, D.C., in mid-2002

was on gadgets, instruments, and equipment used for espionage

purposes. The artifacts on exhibition were those that were used

in the past. Another fascinating museum opened to even greater

response in Kuala Lumpur, the capital of Malaysia around the same

period. It was a ghost museum! Most of the exhibits were basedon traditional Malay folklores, mysteries and myths about ghosts.

They were ideas of the past that entice countless curious audience

of this modern world!

Perhaps, one of the most well-known examples about

learning from the past has been the successes enjoyed by car

manufacturers who brought back the Beetle (Volkswagen) and the

Mini Cooper (Austin). Realising that there is a sizeable segment

of the motoring public who hold nostalgic memories of these two

cute cars, they were both rejuvenated and given a new lease of life.

Beetle enjoyed great success since its launch a few years ago.

Mini Cooper was launched in 2001 and enjoyed great acceptance

by the market too.

In Singapore, some innovative food operators have also

revived seemingly old businesses by learning from the past.

Realising the attractiveness and nostalgic ambience of the old

coffee shop, commonly known as kopitiam (ka fei dian )

by Singaporeans, these operators literally set up eateries called

Kopitiam. In addition, they also brought back food items that were

popular in the past. These include the half-boiled eggs, the kaya13

toast and others. By learning from the past, these new generation

food operators have managed to attract many local patrons.

Interestingly, among them include many young professionals who

yearn for a taste and experience of the past. Many too, have

become converts and regular patrons of Kopitiam!

With the increasing economic importance of China and

its growing afuent class of consumers, many enterprising

businessmen had also brought back nostalgic products and

services of the past to great success. Some examples include the

Chinese cheongsum14, the Mao suit15, nightclubs that play the

songs of old Shanghai hotel lounges that offer classical Chinese

music, etc. All these products and services of the past have been


13 Kaya is a local jam-like bread spread made from eggs and other ingredients.

14 This is a traditional evening gown for ladies.

15 This is a traditional Chinese suit that was popularised by Mao Ze Tong, the late communist leader of China.

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very well received. Their successes are likely to inspire more of such

offers in the future.

Learn From Printed Media and Publications,

Including Web-based Sources

The Chinese has a very interesting saying about learning

through reading:

Kai juan you yi

Reading will always bring about benets.

With advances in information technolgy, the search for

information is becoming easier and easier. One only needs to enter

Yahoo and Google websites to experience the power of their searchengines. They literally lead us to the limitless world of knowledge

and information at the touch of the keyboard. Almost all printed

media can also be sourced electronically. Additional access to

specic information can be obtained through e-mails and websites

that have all kinds of hyper-links to other sites. Most importantly,

almost all of these information can be obtained for free or at very

low cost. One only needs to have the basic skills to surf and search

the Internet for information.

Given the great potential that electronic data search can

provide, companies should seriously consider devoting dedicated

resources for such purposes. As mentioned, a lot of information,

ideas, etc. can be obtained at very low cost and with not much

effort in such a manner. This effectively justies the case for

employing dedicated personnel to perform such functions. Not

surprisingly, the more enlightened companies have appropriately

employed information technology ofcers who are also procient

in conducting research on the Internet. If budget permits, it is

timely for a company to consider appointing intelligence and/or

information executives whose tasks are mainly to search, compile

and analyse information that are relevant for usage by the company.

Participate in Exhibitions, Trade Shows, Conferences,

Overseas Visits, etc.

As mentioned, there is no limit as to where one can learn.

Participation in exhibitions, trade shows, going on overseas trips

etc. are also means in which one can gather new ideas and

concepts. The furniture, jewelry, clothing, toys and household

appliances industries are good examples. Typically, new designs

and concepts can be gained from taking part in trade fairs and

shows. It is at such meetings that ideas, concepts and designs

are exchanged, borrowed and adapted for different usages and

purposes. The following Chinese saying captures the spirit of this

kind of learning aptly:

Cong jian zhe bo, duo wen zhe zhi

Those who see more will broaden their perspective. Those who

listen more will know and learn more.

Obviously, by travelling more, one will have greater chances

to see more and listen more. In particular, learning will come from

interacting with people from different backgrounds and culture.

To survive and compete in this increasingly intertwined world of

business, there is an increasing need for a company to be exposed

to what is going on in the rest of the world. This is to allow it to

explore trade and business opportunities beyond its own national

borders, and to understand the needs and wants of its international

customers. This can only come about when a company is prepared

to go abroad rst to learn before venturing to market or sell its

products in overseas markets. Unfortunately, many companies

forget about the need to learn rst. They hastily export theirproducts, and some even go into direct investment without doing

their homework to understand the local operating environment, their

partners, the customers, the local government, etc. As a result, they

end up licking their wounds. One only needs to think of the many

business failures in China in recent years to understand this point.

Think and Act Outside the Box

If a company is the industry leader, it must be prepared to lead.

If not, some other companies will take over the leadership soon.

More importantly, it must focus on distancing itself from the rest of

the eld. To achieve this, it must be prepared to think and to act

outside the box. This means learning from all kinds of sources and

breaking conventions if necessary. Take the case of McDonald's,

the leader in the western fast food industry. It has a company that is

tasked with supplying it with all kinds of promotional and marketing

ideas. This has resulted in many promotional gimmicks that did not

even form part of its core business. For example, it has over the

years, came up with the marketing of many collectible toys such

as Hello Kitty, Doberman Dog series, etc. that captured the hearts

of its customers. Many consumers were even prepared to join long

queues to buy the burgers so as to be eligible to buy the toys.

Even with its core business of fast food, McDonald's has shown

its willingness to break conventions by adjusting to the needs of the

consumer and the changing market conditions. In Singapore, for

example, it provides chilli for its hamburgers, something unheard of

in the U.S market. In Hong Kong, faced with slowing growth and

the severe economic recession in 2002, it offered McRice meals,

complete with a mould of rice, chicken and a few pieces of brocolli

at HK$22 (about US$2.80). The offer was very well received by its

customers and caused severe threats to the local food operators.

This was because as of mid-2002, McDonald's had 135 outlets

in various locations of Hong Kong. Its ability to provide consistent

high quality meals at every restaurant was something that few localChinese fast food outlets and chains could match. KFC did likewise

in China with its Chinese-style dishes.

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What is perhaps interesting to point out is that McDonald's was

already in Hong Kong since 1975. Given that rice menu ts perfectly

into the eating habits of Hong Kongers who are largely Chinese, it

took McDonald's, an industry leader, more than 27 years to decide

on launching such a meal. Perhaps, it was the steep recession of

2001/02 and the need to arrest declining prots and market share

that prompted McDonald's to depart from its norm of selling mainly

hamburgers. Regardless of the reasons, it is signicant to point out

that it took McDonald's so long to think and act out of the box.

The following Chinese saying captures the essence of the belated

response of McDonald's very well:

Zhi zhi nan, bu zai yu jian ren, shi zai yu zi jian

The challenge in knowing is not in assessing others, but in takingstock of oneself.

Let me illustrate with another example. Some years ago, I had

the privilege of conducting a seminar cum workshop for the Civil

Aviation Authority of Singapore (CAAS). Its Director-General then

was very concerned that CAAS must nd new ways to distance

itself from its competitors. In other words, CAAS was prepared to

think and act outside the box, it had the right learning attitude.

As the leading airport in the world, it was difcult for CAAS to

learn from other airports16. It was interested to learn from any other

means and avenues, and to get ideas and concepts to improve its

operations. Among other things that were discussed at the seminar

cum workshop, I proposed that CAAS should learn from world

class resorts and entertainment centres like Las Vegas, Disney

World and Hollywood. To me, managing the leading airport in the

world extends beyond that of efciency alone. It should include

managing the experience of every passenger who uses it so that

he/she will be completely delighted. Take the case of Las Vegas.

It was built in a desert area. Yet, its hotels, entertainment facilities,

restaurants, shopping centres, etc. are simply fantastic and magical

to the extent that visitors do not get tired spending time there and

going back again. The same can be said about Disney World.

There are many precious lessons that can be learned by studying

the magic behind the success of such mega attractions. In fact,

some of their features could easily be incorporated in the design of

any airport terminal17.

Conclusion: Willingness to Learn

For a company that is in a leadership position, the willingness to

learn is extremely important to ensure that it remains at the forefront

of the eld. This is because being the leader, the general temptation

is to think that it cannot learn from its competitors anymore. It may

even be lured into a state of complacency. Thus, it is crucial that

it adopts the right attitude to learn from all sources, including from

those considered as inferior to it. As mentioned earlier, when it has

the right attitude towards learning, there is no limit in acquiring ideas

and knowledge, as reected by the following Chinese saying:

Dang ni (xue sheng) xiang xue xi de shi hou, lao shi zi ran hui

chu xian

When you (the student) are ready to learn, the teacher will appear.

It cannot afford to relax and take things easy. In fact, it must

consistently and consciously strive to improve itself:

You ze gai zhi, wu ze jia mian

Change when there are mistakes; strengthen when there are none.

Indeed, business competition is like running a marathon

except that it has no nishing line. At the same time and at any

one point, new and fresh runners can join the eld. To survive

the competition, it must learn to widen its lead and distance itself

from the rest. In this way, it can continue to be innovative and

creative and to perform the functions of what a leader should be

doing. After all, according to Sun Zi, it is always better when the

enemy has to prepare himself against you than the other way

round. Such an enviable position can only be available to those

enlightened few who know not only to stay ahead of the eld, but

to distance himself with such a comfortable gap that the others

will not only simply give up on trying to catch up, but would openly

acknowledge the leader as the supreme emperor or supreme

commander as mentioned at the beginning of this paper.

Wee Chow Hou (C H Wee) is a professor of Strategy, Management

& Organisation and Chairman of the Nanyang Executive

Programmes at the Nanyang Business School, Nanyang

Technological University (NTU) and a Honorary Professor of the

Faculty of Management at Xiamen University (China) and the

Universiti Tunku Addul Rahman (UTAR) of Malaysia. Prior to joining

NTU, he was Professor of Business Policy (since 1995), Dean of

the Faculty of Business Administration and Director of the Graduate

School of Business from February 1990 to January 1999 at the

National University of Singapore (NUS).

This article was rst published in Nanyang Business Review by the

Nanyang Business School of Nanyang Technological University (NTU).

Reproduced with permission.

16 In fact, CAAS does this very often by sending its top ofcials to study and learn from other airports around the world.

17 For the regular visitors to CAAS, I leave it to their judgement and observation as to whether it has incorporated some of the ideas/concepts in the

airport terminals. Whats my Range, a fun game with free shopping vouchers and prizes, for example, was introduced very successfully at the

airport in 2001/02.

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