Direct and Indirect
Sun Tzu said, “In all fighting, the direct method may be used for joining battle, but indirect methods will be needed in order to secure victory.”
Sun Tzu points out there there are many combinations of direct and indirect attacks. There are so many variations that it is simply impossible to come up with them all. As proof, Sun Tzu talks about how there are only five primary colors and yet they produce infinite combinations of colors. The same is also true of music. You can create infinite musical scores with only five notes.
The interesting part is that Sun Tzu points out that indirect methods are needed to secure victory. In business, competition is fierce. To directly attack the opponent all the time is predictable and easy to defeat. It is a much better strategy to use a combination of direct and indirect attacks.
One strategy that companies use is that they pretend to be using a direct attack against a competitor. When, they are really just trying to see how their competitor will react. It is a low cost way to determine their strategy. Some companies think they can't afford a fake attack, but this is an error. Losing market share is much more expensive than a fake attack. Making the right plans is what ensures victory.
Many companies use indirect attacks to get into the market. For example, someone that wants to get into manufacturing semiconductors might start out making chips for a televisions or calculators or watches. They will get their foot in the door with probably a low profit chip in a small obscure part of the market. This is indirect because the company may have the ultimate goal of being the leader in computer CPU manufacturing. Most small companies must enter the market indirectly because it is so much cheaper and more doable with a small labor force.
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