Many thanks, Charlie. You're a life saver.
Regards,
Fred Nickols, CPT
Distance Consulting
"Assistance at a Distance"
nickols@att.net
www.nickols.us
> -----Original Message-----
> From: Management Education and Development Discussion
> [mailto:
MG-ED-DV@MAELSTROM.STJOHNS.EDU]On Behalf Of Charles Wankel
> Sent: Thursday, September 30, 2004 10:41 AM
> To:
MG-ED-DV@MAELSTROM.STJOHNS.EDU
> Subject: Re: Help with a failing memory [Deceiving the Competition:
> Wausau Papers' "Hard Ball"]
>
>
> EXCERPT from: Stalk, Jr., George, Lachenauer, Rob, "Hard Ball," Harvard
> Business Review, Apr2004, Vol. 82, Issue 4.
>
> Deceive the competition. Do you have a great strategy but worry that you
> lack the time to get it in place before competitors can blunt or otherwise
> resist it? Hardball players will mislead rivals to buy time--or
> to gain any
> other kind of competitive advantage.
>
> Think of the "fake" that is a fundamental--and legal-tactic in
> any number of
> sports: the head fake in basketball, the fake handoff in football, a
> pitcher's fake pickoff throw in baseball. The aim of all these
> feints is the
> same: getting your rival to set up or move in a way that puts him off
> balance and reduces his ability to meet your attack.
>
> Similar moves occur in business, although no one says much about them. The
> high-technology industry has employed fakes for years--for example, to
> attract potential customers and distract competitors, a software company
> will announce "vaporware" that isn't ready for prime time. In the auto
> industry, prototypes are sometimes doctored up to throw off the
> competition.
>
> Pushing this tactic too far--beyond the caution zone--could spell trouble,
> especially if it deceives investors as well as competitors. But certain
> types of fakes, particularly those that distort rivals' understanding of
> what you're up to, represent a key hardball strategy.
>
> Wausau Papers was a poorly performing manufacturer of uncoated paper, with
> outdated machines and high production costs. When a new president of the
> company learned that Wausau had an unusually large share of business in
> Chicago, he began asking questions. It turned out that Wausau's share was
> high there because, with a factory nearby, it could service its
> distributor
> daily. This became the foundation for a new strategy: Wausau would offer
> next-day service to its distributors in the major mid-western cities and
> encourage them to order small quantities, some with custom specifications.
>
> Wausau's customers responded enthusiastically to this offering of better
> service and greater choice. Frustration over long and unreliable
> lead times,
> poor service, and limited choice from traditional suppliers was
> so high that
> distributors eagerly switched to Wausau, even if they had to pay a premium
> price. Indeed, some ordered Wausau's traditional commodity products along
> with its new customized ones because of its speedy service.
>
> Wausau had to move fast to lock up its customers before competitors caught
> on and copied the strategy. To buy time, the company decided to
> try a little
> sleight of hand. Wausau was helped by the traditional mind-set of the
> industry. Its competitors, used to keeping their prices down by producing
> standard products in large quantities on very fast machines, were
> initially
> confused by customers' willingness to pay a premium for
> significantly better
> service and choice.
>
> Wausau needed to prolong this confusion so that rivals would take no
> action--or the wrong action--while the company executed its new
> strategy. So
> Wausau executives told the trade press that the company had been able to
> speed deliveries by holding large inventories of finished goods and by
> working longer hours--both of which were true. But the company
> didn't signal
> that it had also undertaken a major shift in strategy and operations. As
> Wausau hoped, competitors for the most part chose to ignore
> Wausau's moves.
>
> In addition to this active deception, the company employed passive
> deception, allowing competitors to think that they were continuing to win
> against their historically weak rival. Although Wausau rapidly
> captured the
> business of service-sensitive distributors that needed
> high-margin specialty
> products, many of those distributors continued buying competitively priced
> commodity products from less service-oriented suppliers. The suppliers saw
> this new segmentation as entirely acceptable; why would they want to
> undermine their own performance by introducing costly small
> production runs?
>
> Furthermore, to meet the demand of customers who wanted to continue buying
> its commodity products, Wausau began buying commodity papers in rolls from
> its competitors, cutting and repackaging them as part of its overall
> offering--which delighted the competitors. Wausau thus reduced its
> production of commodity papers and boosted its rivals' reliance on those
> low-margin products.
>
> Cybercollegially,
> Charlie Wankel
>
> -----Original Message-----
> From: Management Education and Development Discussion
> [mailto:
MG-ED-DV@MAELSTROM.STJOHNS.EDU] On Behalf Of Fred Nickols
> Sent: Thursday, September 30, 2004 10:02 AM
> To:
MG-ED-DV@MAELSTROM.STJOHNS.EDU
> Subject: Re: Help with a failing memory
>
> P.S.
>
> I also recall mention being made of misdirection, that is, leading the
> competitors to believe the company in question was up to something other
> than what it was up to.
>
> Regards,
>
> Fred Nickols, CPT
> Distance Consulting
> "Assistance at a Distance"
>
nickols@att.net
>
www.nickols.us
>
>
> > -----Original Message-----
> > From: Management Education and Development Discussion
> > [mailto:
MG-ED-DV@MAELSTROM.STJOHNS.EDU]On Behalf Of Fred Nickols
> > Sent: Thursday, September 30, 2004 9:48 AM
> > To:
MG-ED-DV@MAELSTROM.STJOHNS.EDU
> > Subject: Help with a failing memory
> >
> >
> > Sorry to pose such an inane request but I can't recall the name
> > or location
> > of something I read recently and I'm hoping someone on this list
> > might have
> > a much better memory.
> >
> > I read something about strategy; specifically, about keeping
> your strategy
> > close to your vest so that competitors don't get wind of what
> you're up to
> > until it's too late for them to either counter or copy. The
> case in point
> > was the paper industry and I believe a manufacturer shifted from
> > high-volume, low-margin products to specialty papers with much higher
> > margins and left the low-margin business to his competitors. The case
> > involved, also, a new CEO who took a look at the business and discovered
> > this high-margin business waiting to be tapped.
> >
> > Ring a bell with anyone?
> >
> > Regards,
> >
> > Fred Nickols, CPT
> > Distance Consulting
> > "Assistance at a Distance"
> >
nickols@att.net
> > www.nickols.us