Mind of Strategist by Kenichi Ohmae

Ateneo Professor on Entrepreneurship

Rizal  |  Philippines  | December 31, 2013

It is just 7 hours before 2014 and here I am collecting my thoughts on business, management entrepreneurship, and strategy.

I am reminded of Kenichi Ohmae, one of the most brilliant business strategic thinker of the modern times.  He must have advised hundreds of Japanese businesses develop winning strategy.

He is more well known for the 3C triangle:  company, competition and customer.  I remember him for emphasizing the Sales - Cost = GP equation and having a long road map for this;

1. All businesses should emphasize sales/selling growth in sales.  All top efforts must be made to sell. Investments must be made for selling. Selling comes first.  Selling is top priority.  It is a key activity, as fighting, destroying the enemy is in warfare/military.  Make no mistake about this.

Thus what do you do:

      1.  Bundling

      2.  Upselling

      3. Use all marketing channels:   below the line, above the line, internet marketing.  Use autoresponders in internet marketing.   Do viral marketing etc.




   How do you increase sales:

   1.  Increase the number of units sold

   2.   Increase the value of the product/benefits so that you can set higher selling price

   3.  Increase the channels/agents/placement

   4.  Increase the number of offerings/products

   5.  Increase the area where you cast your net

   I think the priest in a church where I went to this morning must be keenly aware of this.  He reminded the devotees that there was another mass, and they can pay homage to the patron saint where they can make their offering.   (What was he doing?  He was making more offering.)

How do your decrease cost:

A  Making the product:

   1.  Reduce the number of processes (KISS) lean system for you;

  2.  Reduce the material input (materials throgh VA/VE)

  3.  Reduce labor cost by automation

       #2 and # which was not common at that time, is to reduce cost by outsourcing

B.  Marketing:

1.  Reduce channel

2. Reduce marketing cost

3.  Making the products that people buy (wow)

C.  Overhead:

1.  Avoid duplication of work among SBU by centralizing this

2. Shared resources;  (say if you operate stores.  3 would be break even, the 4th makes money)

If you combine the thoughts of Andrew Grove and that of Ohmae, then you have an unbeatable template for growth and profitability.

What are the values of these questionnaires for strategic thinking, entrepreneurship

Reducing cost is reverse marketing.

What is reverse marketing?

The Mind Of The Strategist from Salil Deshmukh