First, the devastating episode of unpredicted and not even remotely thought of global pandemic created by a deadly virus led to death of millions, disruption in economies, and decay of liberal political ideas which were to be replaced by strict nationalist considerations across countries. Then came to light the resultant fall out of the disaster in terms of widening gap between the poor and the affluent, and the devouring of small fish by the big and mighty ones in the corporate world. The competitive world became more skewed.
Yet the good news is that history can tell us how even in a seemingly unequal battle there were joyous moments for some entrepreneurs who, though looking innocuous and tiny, had successfully prevented the bulldozing by the all powerful entities. Fierce competition in many sectors in the business world has been the rule rather than exception. It is true that managers from both large and small organizations alike are always faced with this constant challenge to fend off a potentially stronger competitor from their areas of operations. While large organizations might be at a relative advantage compared to a smaller entity due to its size and resources, the competitive pressures are faced by all types even in a micro manner. This potential threat keeps the managers and leaders constantly on their toes and compel them to devise strategies that help navigate these treacherous competitive environments.
Since the advent of the liberalisation in 1991, multinational corporations entered the Indian market posing a big challenge to the Indian firms. These MNCs were large firms with significant business presence in various parts of the world, operated with large economies of scale and were relatively cash rich. In contrast, the Indian firms were operating in a much smaller market with less cash flows and capital intensity than their MNC rivals. While many local firms perished in this onslaught, a few notable ones have not only survived but have thrived in this competition. Take, for instance, the entry of Japanese bike-maker Honda into the domestic bike sector in the late 1990s. Indian firm Bajaj faced a serious competition from it. However, instead of directly competing with it, it sought to maintain its key strengths and not forage into uncharted territory. Therefore, while Honda made relatively expensive high-end bikes, Bajaj continued to focus on the fuel efficient middle-class bikes and used its extensive network of small roadside repair shops for customer support which Honda lacked. Similarly, Godrej, in the FMCG segment, stuck to its relatively inexpensive hair colour brand instead of competing with high end players such as L’Oreal. In the IT and ITES sector, Indian companies such as Wipro and Infosys initially focussed more on the low-end services supply. Only in the later years, after establishing a good reputation for themselves did they begin directly challenging the larger players like Accenture.
Just as in many other cases, key learnings can be derived from children’s stories or folktales on how to mitigate such competition and also to take advantage of one’s positions. It also serves as a warning to the complacent and arrogant that the laws of the market are all too brutal and he who fails to understand that finds his place in the graves.
Once upon a time, a tiger challenged a tiny fish to a race. If the fish lost he would be eaten by the tiger. The fish requested the tiger to allow him to run (or swim rather) in the pond itself while the tiger would run along the banks. The tiger agreed, thinking that this would hardly make any difference to the outcome. On the day of the race, the tiger lost while the fish won. Dejected, the tiger went away in shame. Yet what the tiger failed to see is that the fish had placed members of his own species at specific locations on the track. Thus, every time the tiger checked to see who was leading the race, he would find the fish ahead of him. Actually, it was another fish that was placed ahead of the tiger. As every fish looked identical, it was impossible for the tiger to understand that he had been duped.
The story of the tiger and the herd of little fish provides such an illustrative insight into leadership decision making in response to a potential adversary. The little fish was small, and probably did not match the tiger in its speed or strength. But what it lacked in speed or strength, it made up for it by the use of innovative strategies. First, the fish ensured that it didn’t step out of its own environment. It knew that it was no match for the tiger on land. It was important to play the game from a position of strength. Second, it decided to work in teams. After all, we are stronger when we work together. By placing members of its own species at different points along the edge of the pond, the fish demonstrated the need for cooperation within an organisation to achieve desired results. Working in silos or competing against one’s own staff or employees is usually debilitating for the growth of the organization. As a leader, one must be able to inspire all stakeholders to work together, leave individual differences aside and to set eyes on a common goal. The other area where the fish worked upon was the use of stealth and illusions. The tiger could have no clue as to what the fish strategized underwater. This way, the strategies remained completely hidden from the adversary and it could never plan a counterattack.
By placing the fishes at different intervals, the fish created an illusion to the tiger that it is invincible and that it is always ahead of him. This can demoralise the opponent who can then buckle under pressure. That’s exactly what happened to the tiger. This is a very important strategy for any organization competing with another. By demonstrating that you are superior to your adversary- whether it is actually true or not doesn’t matter- you deter the adversary from challenging you in the first place. Even if it does, you always have a psychological advantage over him in the beginning which you can capitalise on later.
Finally, we come to the tiger’s perspective. By virtue of being the king of the jungle and big in size, the tiger had a potential advantage to begin with. Yet with power comes responsibility. The more powerful you become the more complacent you become. The tiger had a feeling that it was invincible and it brimmed with overconfidence. In the process, it underestimated its adversary and did not take any steps to anticipate its strategies. Large organizations that end up losing their competitive edge to smaller rivals fall for this complacency trap. A number of examples can be taken such as Nokia, Kodak and so on. These companies at one point in time were placed at the commanding heights of their respective markets. Yet they failed to evolve to the changing environments caused by the entry of new innovative rivals.
The story of the tiger and little fish is a subtle reminder to the managers and leaders on how they can learn from such folktales. Such leadership theories remain hidden in these little folktales which can act as a guiding hand for the new generations of business leaders.
This article appeared in The Economic Times’ ET Government Opinion column on 6th March 2021. Written in collaboration with Kuladhar Saikia. Link:https://government.economictimes.indiatimes.com/news/economy/opinion-winning-the-battle-of-un-equals/81362961
Aranyak Saikia 