36 Strategies

Re: The 36 Strategies

Postby helios » Wed Jul 02, 2008 9:31 am

Strategy 19 - Pulling the Firewood from Beneath the Cauldron Fu Di Chou Xin (斧底抽薪)

= when faced with a strong opponent, don't fight forcefully, it's better to use tactics to destroy his morale;

= the weak can conquer the strong

Examples:

1. Removing key corporate lieutenant, esp. when direct confrontation and competition is not advisable;

2. Landlord offering preferential terms to anchor tenants

3. Avoid head-on competition against a larger one for the same market. Instead, find a niche.
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Re: The 36 Strategies

Postby helios » Wed Jul 02, 2008 9:47 am

Strategy 20 - Catching a Fish in Troubled Water Hun Shui Mo Yu (浑水摸鱼)

= when the enemy is in a state of confusion, one shold take advantage & gain control when he's weak with no direction;

= 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.
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Re: The 36 Strategies

Postby helios » Thu Jul 03, 2008 8:23 am

Strategy 21 - Making an Unnoticed Escape like a Golden Cicada Shedding its Skin Jin Chan Tuo Ke (金蟬脫殼)

= to preserve the formation & strength of the army;

= not to arouse the suspicion of enemies

= seretly diverting the army to escape unnoticed -
= this strategy is designed not only as means of escape but can be used by the retreating army as a cover-up for a counter-attack with the creation of an illusion/ deception.

Sun Zi said:
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 are not going as well as expected so he'll invite local participation by divesting some of his equity to the locals. In order not to cause alarm, he may volunteer to stay in an advisory role to create the impression he has not abandoned the company (in reality, he has no stake & risk in the company).

3. IPO; taking a privately owned company into a public listing, to reap many times their original investments; However, they are maintaining a controlling interest stake (w/o losing control of the company).
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Re: The 36 Strategies

Postby helios » Fri Jul 04, 2008 12:14 pm

Strategy 22 - Shutting the Doors to Catch the Thief Guan Men Zhou Zei (关门捉贼)

= to surround a weak enemy & shut down all routes of escape
= 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

4. In applying this strategy, one must be fully aware that consequences may extend beyond the direct effects on the target(s) concerned.
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Re: The 36 Strategies

Postby helios » Sun Jul 06, 2008 11:44 am

Strategy 23 - Befriend the Far and Attack the Near Yuan Jiao Jin Gong (遠交近攻)

- sometimes, due to geographical constraints, it's more beneficial to attack a nearby enemy than to attack another far away;

- if the situation permits, form a temporary alliance with a distant enemy, to destroy the nearby enemy;

Examples:

1. Strategic alliances with distant partners - airline industry;

2. International trade and investment;

3. Franchising & licensing.
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Re: The 36 Strategies

Postby helios » Sun Jul 06, 2008 12:12 pm

Strategy 24 - Borrow a Passage to Attack Guo Jia Tu Fa Guo (假途伐虢)

= if the enemy threatened to control a smaller state situated between enemy and oneself, one will render to help & support to the smaller state to earn its trust;

= mere words without action will not win the trust of the 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 with minimal risks

3. Diversifying through acquisitions, hedging financial risks & capital risks in certain countries.
NB: is that di-worsification?
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Re: The 36 Strategies

Postby helios » Tue Jul 08, 2008 9:22 am

Deception Strategies # 25-30

Strategy 25 - Replace Superior beams and pillars with inferior ones Tou Liang Huan Zhu (偷梁换柱)

= find chances to change the battle frequently;
= extract the main power;
= wait until enemy is unable to cope with the situation;
= launch an opportunistic attack;
= if one can take control of the big wheels, one will also be able to take control of the direction of the truck.

Examples:

1. Short-charging the consumer; parallel importing;

2. Pirated goods.
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Re: The 36 Strategies

Postby helios » Tue Jul 08, 2008 9:39 am

Strategy 26 - Pointing at the Mulberry but scolding the Locust Tree; Zhi Sang Ma Huai;
( 指桑罵槐)

= a stronger party can use warnings, to control a weaker party

= in battle, it's not necessary to destroy the weaker party entirely, however one can frighten the latter into obedience, by using military rules

Examples:

1. Legal letters

2. To apply this strategy, one must be in the leadership position with strength
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Re: The 36 Strategies

Postby helios » Wed Jul 09, 2008 8:08 am

Strategy 27 - Pretending to be Insane ; Jia Chi Bu Dian; (假痴不颠)

= 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.

= one should prepare well to wait for an opportunity to strike,

Examples:

1. Business tycoons who keeps a low profile to avoid publicity;

2. Creating illusions, market perceptions, to build up substantial reserves.
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Re: The 36 Strategies

Postby helios » Thu Jul 10, 2008 1:31 pm

Strategy 28 - Remove the Ladder after the Enemy Ascends to the Roof Shang Wu Chou Ti;
(上屋抽梯)

= pretend to expose one's weakness to lure the enemy into one's trap; when the enemy is within one's control, cut off its supply routes to destroy him;

= this strategy warns against taking a small advantage as this might result in one's destruction.

Examples:

1. Creating advantages (without violating legal, ethical & advertising codes)

2. Incremental ego trapping to spend more than desire eg. Casinos, Timesharing etc.
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