36 Strategies

[helios]

Strategy 19 - Pulling out the Firewood from Beneath the Cauldron (釜底抽薪) fu di chou xin

不敌其力，而消其势，兑下乾上之象。

解释:

- 不敌其力，而消其势 = when faced w a strong opponent, don't fight forcefully (verb: 敌), it's better to use tactics to destroy his morale;

- 兑下乾上之象 = e weak can conquer e strong, this's similar to (柔克刚).

Examples:

1. Removing key corporate lieutenant, esp. direct confrontation and competition is not advisable; e "battle" for talents between e private and public sector in many Asian countries;

2. Landlord offering preferential terms to anchor tenants; maybe listed companies?

3. Avoid head-on competition against a larger one for e same market pie. Instead, find a niche.

[helios]

Strategy 20 - Catching a Fish in Troubled Water (混水摸鱼) hun shui mo yu

乘其阴乱，利其弱而无主。
随，以向晦入宴息。

解释:

- 乘其阴乱，利其弱而无主 = when e enemy is in a state of confusion, one shld take advantage & gain control when he's weak w no direction;

- 随，以向晦入宴息 = let nature take its course.

Examples:

1. Exploiting chaotic situation to acquire a controlling stake, e.g. banks experiencing huge loans & debts;

2. Currency & Stock/ Economy crisis.

[helios]

Strategy 21 - Making an Unnoticed Escape like a Golden Cicada Shedding its Skin (金蝉脱壳) jin chan tuo ke

存其形，完其势；友不疑，敌不动。
巽而止，蛊。

解释:

- 存其形，完其势 = to preserve e formation & strength of e army;

- 友不疑，敌不动 = not to arrouse e suspicion of e allies;

- 巽而止， 蛊 = seretly diverting e army to escape unnoticed (暗中谨慎地实行主力转移，稳住敌人，则乘敌不惊疑之际脱离险境，就可安然躲过战乱之危) - like a cicada metamorphosises - this strategy is designed not only as means of escape, but can be used by e retreating army as a cover-up for a counter-attack w e creation of an illusion/ deception.

Sun Zi said:

孙子兵法：故能而示之不能，用而示之不用，近而示之远，远而示之近。

Therefore, when capable, feign incapable,
when active, feign inactive.
When near, feign far,
when it's far away, make it seems like it's near.


Examples:

1. Use of contingency planning; a company cannot rely on only 1 course of action but alternative courses.

2. Divesting & reducing investment & equity; a foreign investor senses that things r not going as well as expected, he'll invite local participation by divesting some of his equity to e locals. in order not to cause alarm, he may volunteer to stay in an advisory role to create e impression he has not abandoned e company (in reality, he has no stake & risk in e company).

3. IPO; businessmen r taking a privately owned company into public listing to reap many times their orginal investments, however they r maintain'g controlling interest stake (w/o losing control of e company).

[helios]

Strategy 22 - Shutting the Doors to Catch the Thief (关门捉贼) guan men zhou zei

小敌困之。剥，不利有攸往。

解释:

- 小敌困之 = to surround a weak enemy, & shut down all routes of escape (困围或歼灭);

- 剥，不利有攸往 = not advisable to pursue a weak but agile enemy.

Examples:

1. Handling weaker products and brands, a head-on promotional price war strategy is not necessary;

2. Exploiting the advantages of size via distribution networks, economies of scale;

3. Zero-sum outcome if there's backlash/ resistance = e.g. an illustration: in e 1997 currency & stock market crises, may Asian Co. w shares trading at historical lows/ severely in debt. have become vulnerable to foreign takeovers and buyouts to acquire significant stakes in Asian Co., these Co. shld progress w caution to avoid backlash.

** in apply'g this strategy, one must be fully aware that consequences may extend beyond e direct effects on e target(s) concerned.

[helios]

Strategy 23 - Befriend the Far and Attack the Near (远交近攻) yuan jiao jin di

形禁势格，利从近取，害以远隔。上火下泽。

解释:

- 形禁势格，利从近取，害以远隔 = sometimes, due to geographical constraints (禁止), it's more beneficial to attack a nearby enemy than to attack another far away;

- 上火下泽= if e situation permits, form a temporary alliance w a distant enemy to destroy e nearby enemy (使敌相互矛盾、离违);

Examples:

1. Strategic alliances w distant partners - airline industry;

2. International trade and investment;

3. Franchising & licensing.

[helios]

Strategy 24 - Borrow a Passage to Attack Guo (假途伐虢) jia tu fa guo

两大之间，敌胁以从，我假以势。
困，有言不信。

解释:

- 两大之间，敌胁以从，我假以势 = if e enemy threatened to control a smaller state situated bet. e enemy and oneself, one will render to help & support e smaller state to earn its trust;

- 困，有言不信 = mere words w/o action will not win e trust of e smaller state.

Examples:

1. Marketing under other's companies brands to gain necessary experience, market entries, etc;

2. Piggybacking, or known as backward integration strategy to do it w minimial risks; as illustrated in Hour Glass when it went into manufacturing biz?

3. Diversifying through acquisitions, hedging financial risks & capital risks in certain countries.
NB: is that di-worsification?

[helios]

now, we'r acrossing over to Deception Strategies # 25-30 (并战计):

Strategy 25 - Replace Superior beams and pillars with inferior ones (偷梁换柱) tou liang huan zhu

频更其阵， 抽其劲旅， 待其自败，而后乘之，曳其轮也。

解释:

- 频更其阵 = find chances to change e enemy's battle frequently;
- 抽其劲旅 = extract e main power;
- 待其自败 = wait until enemy is unable to cope w e situation;
- 而后乘之 = launch an opportunistic attack;
- 曳其轮也 = if one can take control of e big wheels, one will also be able to take control of e direction of e truck.

*e word 其: 均指盟友、盟军言之 (refers to enemy or strategic alliances)

Examples:

1. Short-charging e consumer; parallel importing;

2. pirated goods.

[helios]

Strategy 26 - Pointing at the Mulberry but scolding the Locust Tree (指桑骂槐) zhi sang ma huai

大凌小者，警以诱之。
刚中而应，行险而顺。

解释:

- 大凌小者，警以诱之 = a stronger party can use warnings to control a weaker party (指:强大者要控制弱下者);

- 刚中而应，行险而顺 = in battle, it's not necessary to destroy e weaker party entirely, however one can fighten e latter into obedience by using military rules (治军，有时采取适当的强刚手段便会得到应和，行险则遇顺).

Examples:

1. Profit warning issued? Legal letters?

2. To apply this strategy, one must be in e leader's position w strength in equities.

[helios]

Strategy 27 - Pretending to be Insane (假痴不颠) jia chi bu dian

宁伪作不知不为，不伪作假知妄为。
静不露机，云雪屯也。

解释:

- 宁伪作不知不为，不伪作假知妄为 = one pretends to know nothing & take no position/ action, it's a better decision than to pretend he knows everything & handles a situation hastily; feign weakness when one is strong, be humble.

- 静不露机，云雪屯也 = one shld prepare well to wait for an opportunity to strike, paraphas'g as: e thunder, lightning need to wait for winter's arrival - timely.

Examples:

1. Business tycoons who r keep'g low profile to avoid publicity;

2. Creating illusions, market perceptions to build up substantial reserves.

[helios]

Strategy 28 - Remove the Ladder after the Enemy Ascends to the Roof (上楼抽梯) shang lou chou ti

假之以便，唆之使前，断其援应，陷之死地。
遇毒，位不当也。

解释:

- 假之以便，唆之使前，断其援应，陷之死地 = pretend to expose one's weakness to lure e enemy into one's trap, when e enemy is within one's control, cut off its supply routes to destroy him;

- 遇毒，位不当也 = this strategy warns against taking a small advantage as this might result in one's destruction.

Examples:

1. Creating advantages (w/o violating legal & ethical & advertising codes) n business or retail practices.

2. Incremental ego trapping to spend more than desire. EG: Casinos, timesharing industry, etc.