3.4 Dis-Economies of Scale

Principles describing openings that are created by the size of others.

Broken Windows: Microsoft & Dis-Economies of Scale

As a PC user, I found this recent story about Miscrosoft to be a perfect example of why Sun Tzu taught that size is not power. Companies such as Amazon and Apple have taken the lead in eBooks and tablet computing because of Microsoft has lost its unity and focus ([node:https://scienceofstrategy.org/main/content/strategic-principle-day-34-la... link]).

Warrior's Rules: 

Obama's First SOTU: The Power of Small Moves

Yesterday's State of the Union address clearly demonstrates one of the most basic, non-intuitive aspects of Sun Tzu's Warrior's Rules: that small moves are more powerful than larger ones ([node:content/strategic-principle-day-55-small-steps-are-more-certain-and-powerful link]). After President Obama spoke for 70 minutes on a wide variety of issue, what most people are talking about today is the two second response by Justice Alioto, shaking his head and mouthing "Not true."

Warrior's Rules: 

Competitive Arenas: 

Reid's Bill and Napoleon's March on Moscow

As its popularity declines dramatically, the Senate Democratic leadership is poised to press on to get any health care bill passed quickly at any cost, I am reminded of Napoleon's famous march on Moscow. Minard made a famous map of that march illustrating exactly what happened. I have recreated that map showing Reid's March on Health Care (larger version here).

Warrior's Rules: 

Competitive Arenas: 

A Question about Opponents of Different Size and Opponents of Similar Size

A reader writes:

We can all agree that conflict is wasteful. But what if the competitor starts the conflict? If their attack produces a dissipating situation, you have said that there is no good defense and that the correct response is to attack what the competitor values. Doesn't this escalate into the conflict we wish to avoid? How do we actually avoid conflict (or wars of attrition) if attacked? Is this what has happened between Google and Microsoft? Regardless of how this battle began, how can either side defend properly against further attack?

Microsoft versus Google: An Illustration of the Most Common Strategic Mistake

Everyday, we read articles on the business battle between Google and Microsoft (click here for today's installment). This battle illustrates the elements of the most common strategic mistake: the waste of resources on attacking opponents ([node:content/313-conflict-cost link]) instead of working on pursuing opportunities ([node:content/32-opportunity-creation link]).

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