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How It Works Overview
Positional Strategy
Expansion Strategy
Situational Strategy
Strategic Innovation Overview

Situational Strategy

Situational strategy is the study of the appropriate response to specific situations. This is the most detailed and advanced component of the science. It is used for (1) identifying the nature of opportunities, (2) moving into new areas, (3) responding appropriately to threats, and (4) understanding the best method for neutralizing an opponent. It requires understanding the range of conditions that shape a competitive situation and the appropriate responses those different conditions require.

In responding to situations, all decisions must be made consciously and quickly. Even the decision not to act must be a choice rather than the result of indecision. You must quickly choose the best imperfect available alternative rather than waiting indefinitely for a perfect alternative. It is better to choose nonaction if all available actions are too expensive and risky. Fast, short moves are always more powerful than long, large moves. Smaller, faster groups make more progress than larger, slower groups. You create strategic leverage by putting a small amount of the right resources in exactly the right position to create the maximum advantage.

You must adapt your responses to the specifics of your situation in order to move. All situations consist of a number of specific conditions that are well defined within classical strategy—the four types of ground, six ground forms, nine common situations, six types of organizations, five faults of leaders, and so on. Situational strategy teaches the specific responses necessary to adapt to each specific condition. These responses are mixed like ingredients to respond to the specific combination of conditions that make up any specific real-world situation.

In classical strategy, competition is completely different from conflict. Since all conflict is costly and the goal of front-line strategy is to make victory pay, success is more certain when conflict is avoided. Threatening conflict is only cost effective when it decreases the chances of actual conflict. When conflict is unavoidable, you must control the time, place, expectations, and reports of that conflict. If you set up fights so that they are unfair, you are less likely to get involved in them.

Since perceptions create reality and reality creates perceptions, the least costly way to overcome resistance is by doing what is unexpected but appropriate at a critical time. At a critical turning point, expectations must be leveraged by an innovative approach. An appropriate surprise alone can overcome specific obstacles. Though innovation cannot be predicted, classical strategy has its own approach to innovation that starts by mixing the responses required by situational strategy.

 

 
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