What is the “Lanchester Strategy” between the weak and the strong? Introducing how to use it

The strong have their own ways of fighting, and the weak have their own ways of fighting. The weak cannot win by imitating the strong.

The opposite is also true.

The “Lanchester Strategy” will help you create a business strategy that suits you.

What kind of strategy is this? How can it help your business? I will explain about it.

Background to the birth of the Lanchester Strategy

First of all, what is the Lanchester strategy? We will also introduce you to its history.

1. 
   Originally the idea was to win the war.
   

The Lanchester Strategy has a long history, dating back to World War I. Mr. F.W. Lanchester, an engineer who was engaged in the development of fighter aircraft in the United Kingdom, was researching how to develop an advantageous air battle. As a result, it was discovered that the performance of “troop strength” and “weapons” becomes “combat power” and causes damage to the opponent.

Armies with large numbers of soldiers have an advantage in traditional single combat, close quarters combat, and local battles. In this case, “combat power” is expressed by the formula “weapon efficiency x number of troops.”

For example, let’s say that country A and country B each have a weapon with weapon efficiency of 1.

If there are 100 soldiers from country A, their “combat power” is “1 x 100 = 100.”

If there are 200 soldiers from country B, the “combat power” is “1 x 200 = 200.” It is clear that country B will win.

However, the actual battle is not so simple.

What if soldiers from country A launch a surprise attack?

What if we split up country B’s soldiers and pushed them to the edge of a cliff?

What if everyone had powerful weapons such as guns?

Country A has a good chance of winning.

In this way, “combat power” in long-range warfare that uses weapons with high weapon efficiency and wide-area warfare that attacks a wide area is expressed by the formula “weapon efficiency x the square of the number of troops.”

For example, let’s say 100 soldiers from country A launch a surprise attack.

“Combat power” is “1×100²”, so it is 10,000. They are able to win against Country B, which has 200 soldiers, which they could not have achieved in single combat.

1. 
   After the war, the Lanchester strategy was applied to business.
   

After World War II, Lanchester’s Law began to be applied to business. In Japan, management consultant Nobuo Taoka proposed a business strategy that applied the Lanchester strategy.

Business is essentially the same as war, and victory or defeat is determined by military strength (number of employees) and weapons (product strength, sales ability, productivity, etc.).

Business strategies vary.

By using the Lanchester Strategy, you will naturally understand how the weak should fight to win, and what strategies the strong should develop.

Strategy of the strong and strategy of the weak

Lanchester’s strategy can be broadly divided into “Strategies of the Strong (Second Law)” and “Strategies of the Weak (First Law).”

Let’s take a look at what each of them is, using specific examples.

1. 
   Strategy of the Strong (Second Law)
   

In the example above, the strong country is country B, which has many soldiers. In business, it refers to large companies with high corporate size and production capacity, and companies that monopolize market share. The strong are strong in traditional fighting methods such as single combat, close combat, and local battles. By creating more and more products and services and expanding sales using human wave tactics, you can overwhelm the weak. If you monopolize a large market in this way, there will be no room for the weak to enter.

Steadily producing products at overseas factories and expanding sales around the world is a strategy that can only be achieved because of military strength.

The key for strong companies is how to continue investing human resources and protect their market share.

By investing people, goods, and money in cutting-edge fields, we can achieve further growth.

1. 
   Strategy of the Weak (First Law)
   

On the other hand, a weak country refers to country A with few soldiers. When applied to business, this would include small and medium-sized enterprises and sole proprietorships. Compared to powerful large companies, our human resources are vastly lacking, so even if we go head-to-head or engage in close combat in the same market, we cannot win. It is necessary to have weapons that are not dependent on numbers, such as information power, technical ability, quality, and sales ability, and to wage wide-area warfare and long-distance warfare.

By adopting strategies such as expanding sales to regions where large companies have not entered, fighting in niche and new markets, and using highly efficient weapons such as unique technologies and services, “competitive power” can be squared. , you will have a chance to win against large companies.

The important thing is not to fight on the same playing field and with the same weapons as big companies.

Even small and medium-sized companies have a great chance of winning over large companies by gaining market share in a limited market.

1. 
   The strong have their own way of fighting, and the weak have their own way of fighting.
   

There are fighting styles suitable for both the strong and the weak. With the right strategy, the strong will remain strong. On the other hand, even the weak can overcome the strong.

First, consider where your company stands in the market.

You need to determine whether your competition is a strong one with many soldiers or a weaker one with special weapons, and find a way to win based on the Lanchester strategy.

summary

◆The Lanchester Strategy was born during World War I and began to be applied to business after the war.

◆ Broadly divided into “strategies of the strong (second law)” and “strategies of the weak (first law)”

◆Strategies of the strong (second law) are fighting methods such as single combat, close combat, and local battles that utilize human sea tactics.

◆The strategy of the weak (first law) is to have weapons that are not dependent on numbers (technical ability, quality, etc.) and engage in wide-area warfare or long-distance warfare.