Business and war. War and business. Itâ€™s no accident that many business strategies and management techniques were first developed in the military. Actually, itâ€™s quite natural that we think about business competition in terms of war. Companies fight each other for market share. We strategize about how to win the battle. You try to attack my market position, and I defend it. Business is full of such war idioms. Though itâ€™s not the only way we think about business, it is certainly the main way we talk about it. Therefore, to communicate effectively in a business environment, we need to learn these war idioms.
Thatâ€™s what weâ€™ll be doing in this two-part series. In todayâ€™s dialog, the management at Luminex, a producer of LCD TVs, is discussing how to respond to a attack on their market position by a competitor, Meyers. Traditionally, Meyers has been strong in the premium (high value) market and Luminex has been strong in the mid-range market. Recently, however, Meyers has tried to take mid-range market share from Luminex.
The first two speakers feel that while their main competitor, Meyers, has been attacking their market position and giving them fierce competition, they have been doing little to respond. They propose â€œsetting their sights onâ€ or targeting Meyersâ€™ premium market position in order to fight back.
Jane along with the other speaker note that because American consumer spending is going down, it is not a good time to move into the premium market. Jane believes it is wiser to â€œlay lowâ€ or to wait until spending improves to fight back.