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Sun Zi Art of War: Be
Proactive, Ever Ready and
Distance 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 influencing military thinking and war
strategies has seldom been questioned. What is more
interesting, however, is its relevance to the corporate
world. Increasingly, military clichés 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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Wee Chow Hou

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 War remains one of the most
inspiring books on military thought and philosophy that has often
been 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 War provides 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 with hanyu 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.
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 )
reflects 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 influence 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 21st century, 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 firmly 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 of
HP. 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 outfit 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 firing 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
2
In war, while the size of the army (that is, numerical superiority) will provide some definite advantages, it is not sufficient 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.
to contemplate an attack. The need to be proactive had been
expressed in many parts of Sun 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-ready to take on the enemy. Even when
there is no war, troops are trained to the highest level of combat-
fitness and readiness in peacetime. 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-conflict
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-file. In
the worst case scenario, he could even be overthrown by his own
people and / or troops.
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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
profits, 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 that
you would want to be the number one, especially if your company
has the capability of doing so. Any forward-looking and ambitious
company would definitely aspire to become number one in market
share, profits, 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, profits, 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
profits, 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, let
me 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.
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.
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 fairly homogeneous. As such, it
was difficult 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 the industry 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 behaved
along 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 to lead 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 first. 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 profitability 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 definitely cause the demise of the smaller players
and favour the biggest player.
This logic is not difficult 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
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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 profitability. 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 first 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 difficult for the smaller players to wage
MICROBIT
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
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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 profits!
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 field, 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 is
assured 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 flourish
much better if the organisation has enough “capital” and “buffer”to
do so. This is where distancing becomes so crucial. It allows the
leading company to have sufficient 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
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 officer) 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-file.
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 fired 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 motivation
to 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.
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Table 1: Contrasting Leadership Behaviour
WHEN LEADERSHIP GAP IS NARROW
1. Forced to guard against competitors
2. Limited economies of scale
3. Cannot afford to take high risks
4. Can become conservative and less innovative
5. Under stress from competitors
6. Afraid to make mistakes
7. Tend to use more tactics
8. Tend to be reactive and defensive
9. Forced to take more short term measures
10. Can be harassed by the competitors
11. Less market and lobbying power
12. Difficult to dictate nor set the market trends
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 learned
from direct competitors who may be smaller but more agile and
adaptive. Take the case of Kentucky Fried Chicken (KFC) in China.
Since opening its first 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.
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.
WHEN LEADERSHIP GAP IS WIDE
Competitors are wary of moves by leader
Great economies of scale
Can afford to take high risks
More scope for innovation and creativity
Stress is more self-induced
Great leeway to accommodate mistakes
Time to plan and strategise
Can be proactive and be on the offensive
Able to take long term perspectives
Can demoralise the competitors
More market and lobbying power
Able to dictate and set the market trends
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 are
management 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 )
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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. Time
is 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 confined 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 find 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.
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
Superficially, 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.
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 benefits 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 shares
extremely 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 five-star hotels. Today, a top-end hospital boasts
of having valet parking, in-house movies, customised menus, fine
dining outlets, high quality shops, personalised check-ins, payment
by credit cards, etc. These facilities and services are similar to that
provided by a five-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 firm 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
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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 efficient
management of financial cash flow 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 convenience
store chain, in Hong Kong. Realising that McDonald’s 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 traffic 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 1st October 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 find 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 reflected 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
benefit 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 find 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 another
rich 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 find out
more about their customers through data-mining, surveys, focus
group interviews, and other means. Their aim is to find ways to
serve their customers better as well as to find 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 first 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 flew on its
airlines. The purpose was to find the meals that are most suitable
and palatable to young children. This was because SIA discovered
that its frequent flyers include young children and the number
has been increasing over the years. As a leading airline, it was
determined to find 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 finalised plans
to build a third terminal despite the fact that its current two terminals
were more than adequate to handle the volume of traffic 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 do
not 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 satisfied with merely protecting and
maintaining their existing status. Rather, they are always striving to
distance themselves from the rest of the field.
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 lü, 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 influence the purchase decision. What this means is that he is in
a much stronger position than the manufacturer in influencing 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, the
economic downturn and recession played a big part in the
rationalisation of purchases by Asian consumers. Instead of paying
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.
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 is
evidenced 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 five
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 confidence 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
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employment of foreign talents (ke qing ) was commonly
practiced. These foreign talents were actually non-native officials
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 independent parties 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 reflected 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
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.
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 based
on 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 affluent 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
 35 • 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
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 benefits.
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 search
engines. 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
specific 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 justifies the case for
employing dedicated personnel to perform such functions. Not
surprisingly, the more enlightened companies have appropriately
employed information technology officers who are also proficient
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 first to learn before venturing to market or sell its
products in overseas markets. Unfortunately, many companies
forget about the need to learn first. They hastily export their
products, 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 field. 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 local
Chinese 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 fits 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 profits and market share
that prompted McDonald's to depart from its norm of selling mainly
hamburgers. Regardless of the reasons, it is significant 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 taking
stock 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 find 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 difficult 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 efficiency 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 field. This is because being the leader, the general temptation
is to think that it cannot learn from its competitors anymore. It may
16
In fact, CAAS does this very often by sending its top officials 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. “What’s my Range,” a fun game with free shopping vouchers and prizes, for example, was introduced very successfully at the
airport in 2001/02.
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 reflected 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 finishing line. At the same time and at any
one point, new and fresh runners can join the field. 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 field, 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 first published in Nanyang Business Review by the
Nanyang Business School of Nanyang Technological University (NTU).
Reproduced with permission.