Flat Ground
Sun Tzu said, “In dry, level country, take up an easily accessible position with rising ground to your right and on your rear, so that the danger may be in front, and safety lie behind. So much for campaigning in flat country.”
The rising ground on the right and rear leave your back and right in a position of safety. It is also a way to escape, if necessary. In other words, you should always cover your back.
Companies that compete should do the same thing. They should have a place of safety that they can retreat to. For example, a company may have a core part of their business that is safely protected and that can generate cash to run the rest of the company. The company can then use excess cash to go into new more risky investments.
The other point of Sun Tzu is to cover your back. You should not trust people with information that they shouldn't have. Confidential information can often be used to turn people against each other. Past employees may give out confidential information to competitors. The way to cover your back is to have secrecy and not to divulge any information that isn't necessary.
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