INTRODUCTIONSUN TZUSun Tzu was an ancient Chinese military general, strategist and philosopher who, is believed to

have written the famous ancient Chinese book on military strategy, "The Art of War".1 Sun Tzu's
authenticity is still a question of debate, but the traditional Chinese accounts place him in the
Spring and Autumn Period of China (722-481 BC), where he was a military general serving
under King Hel of Wu.2 Through his legends and the influential "The Art of War", Sun Tzu had
a significant impact on Chinese and Asian history and culture.3

THE ART OF WARThe Art of War is a Chinese military treatise that was written by Sun Tzu in the 6th century BC.
It is one of the oldest books about war and military strategy.4 It is considered to be one of the best
war treatises ever written.
The Art of War presents a philosophy of war for managing conflicts and winning battles. 5 It is
accepted as a masterpiece on strategy and its ancient wisdom shows you how to secure your
objectives in business, sports and other areas of modern life.6
The book drew immense popularity during the 19th and 20th centuries when the Western Society
saw its practical use. This work still has continued its impact on both Asian and Western culture

1 http://www.thefamouspeople.com/profiles/sun-tzu-261.php (8/09/13, 6:01pm)

2 Id at 1
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4 SUN TZU, THE ART OF WAR, (2013)
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and politics.7 The Art of War is almost certainly the most influential study of strategy ever
written.8
Sun Tzu's work has been praised and employed throughout East Asia since its composition.
During the twentieth century, The Art of War grew in popularity and saw practical use in Western
society as well. It continues to influence many competitive endeavors in Asia, Europe, and
America including culture, politics, business, and sports, as well as modern warfare.
This book also gained popularity among the political leaders and those in business management.
Today, it is also used in public administration and planning. Apart from describing the theories of
battles, this text also discusses the diplomacy and developing relationships with other nations
importance for the sovereignty of a state.9

IN THE BUSINESS WORLDSun Tzus Art of War is considered to provide the most profound lessons for leadership, and
victory in the East or the West.10 Today its principles are applied to business all over the world. 11
This classic body of work came from life and death scenarios, which evolved from empire, trade
and political struggles.12 Obviously todays corporate world does not induce anywhere near as
strong a mechanism for change, or success, as the consequences of failure in business are far less
than warfare.13 Nonetheless, the trickle down lessons from the Art of War are definitely
applicable to any organized effort, project or business.14

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10 http://www.downloadkarate.com/karate-articles/relevance-of-sun-tzu-art-of-war-applied-to-modernbusiness-strategy (8/09/13, 6:22pm)
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The book although written with warfare in mind, contains so much strategic and management
common sense that it is now on the desk of every Chief Executive, Business Owner and
Marketing Executive.15
Sun Tzus The Art of War has been one of the texts cited regularly as a source of razor sharp
strategic thinking for the Business world, as much as the political sphere.16 Today, The Art of War
is considered the most complete text of strategy, partnering and success. 17 It is therefore
commonly employed by top level executives around the world, and taught in leading business
schools.18
Business interpretations from The Art of War apply to the following areas- 19

business strategy
partnering models for growth
operational efficiency
managing conflict in the workplace
project management and planning

Sun Tzus approaches are all about achieving victory (business growth) with minimal effort,
minimal conflict and maximum operational efficiency. A number of translations have put this
classic Chinese text into the business setting.20
If you know the enemy and know yourself, you need not fear the result of a hundred battles. If
you know yourself and not the enemy, for every victory gained, you will also suffer a defeat. If
you know neither the enemy nor yourself, you will succumb in every battle. 21

15 http://www.studymode.com/essays/Art-War-Corporate-World-154867.html (8/09/13, 6:27pm)

16 http://tweakyourbiz.com/global/2013/01/14/why-wall-street-loves-the-art-of-war-a-13-point-plan-tomastering-business-strategy/ (7/09/13, 7:13pm)
17 http://www.fightingarts.com/reading/article.php?id=500 (8/09/13, 4:53pm)
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In the business setting these words of wisdom are applied by one having an annual business in
which there is S.W.O.T analysis (strengths, weaknesses, opportunities & threats), partnering
models for marketing, sales & support, and operational systems that track business activities and
ensure efficiency.22
Therefore, Sun Tzu would argue that without the rigors of project management, business plans,
and defined goal systems for growth, a business will not realize its full potential.23
The enemies are your competitors. You are fighting for market share already taken by other
businesses, or potential customers not engaged in your market. Your techniques are your product
make-up, price, distribution vehicle and promotional strategies. Victory goes to the business that
can not only gain territory from their competitors, but hold onto it, and most importantly make it
profitable. Profitability is a key point which can be derived from Sun Tzus teachings, as there is
no point in fighting over something that proves ultimately worthless, or is destroyed in the
fight.24

THE 13 TACTICSThe 13 tactics mentioned in The Art of War can be applied into various business strategies. There
are many real life examples where companies have used the tactics from The Art of War to create
their business strategies.
1) LAYING PLANSAll warfare is based on deception.25
The Book states: before any steps are taken, research and planning is the key to any
venture. Once plans are in operation, we have to outwit our competition by not betraying
our course and by being subtle in our direction.26
When The Coca-Cola Company re-entered China in 1979, it was the first international
consumer company to grasp the opportunities offered by the open door policy. Today, the
company is proud to be Chinas leading beverage manufacturer.27

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2) WAGING WARLet your main object be victory, not lengthy drawn-out campaigns.28
This focuses on the importance of decisive behavior, correct timing and economy in your
actions. Before embarking in any ventures, we can minimize challenges, conflict and
ensuing costs.29
Adidas displayed its Dassler shoes in the Olympics, thereby, conveniently getting its
name known without wasting resources on campaigns.30
3) ATTACK BY STRATAGEMThe skillful leader subdues the enemys troops without any fighting.31
Its Not Size but Unity that determines strength and organizational effectiveness. In other
words, avoid competing head on and avoid using up resources directly against
competitors. Aim instead for excellence so that no other organization would even dare
compete.32
In order to beat Honda and become the market leader of motorcycles, Yamaha didnt
access its competitors powers and spent extensively to manufacture more motorcycles.
Later, Honda launched new models and offered a discount thereby causing inconvenience
for Yamaha.33
4) TACTICAL DISPOSITIONSOne may KNOW how to conquer without being able to DO it34

27 http://www.slideshare.net/bright9977/the-art-of-war-in-business-world?from_search=4 (9/09/13,
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This tactic emphasizes Defensive behavior; securing and consolidating the resources you
have and using them effectively as a solid base for exploiting new opportunities when
they occur. Have insurance or fail-safes before embarking on anything new or risky.35
Establishment of Microsoft by Bill Gates by going on leave from Harvard and focusing
on the creation of software technology becoming a billionaire, shows that He knew how
to conquer and he did it.36
5) ENERGYThe quality of decision is like the well-timed swoop of a falcon which enables it to
strike and destroy its victim.37
This Chapter is about capturing momentum and synergy. Sun Tzu outlines Direct and
Indirect/Subtle methods of accomplishing your mission or obvious versus not-so-obvious
downright sneaky methods.38
7up dared to compete with coke by launching its new slogan The Uncola. This was an
indirect way of differentiating itself from coke.39
6) WEAK POINTS AND STRONGDo not repeat the tactics which have gained you one victory, but let your methods
be regulated by the infinite variety of circumstances.40
In business terms, it means to take the initiative rather than play catch, be aware of your
Competitions weak points, expose them and hasten to do better in these areas quickly, be
aware of markets or territories where your Competitor has no presence and exploit these
gaps and be aware of competitive advantage.41
Nestle realized its weakness and got in a new Chief Executive Officer to rectify the
situation.42
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7) MANOEUVERINGThe difficulty of tactical maneuvering consists in turning the devious into the
direct, and misfortune into gain43
There will be times when we will still have to meet difficult challenges head on and may
not be able to circumvent them.44
The Michelin Company has kept its production techniques a secret. It took over the
bankrupt company Citroen and hence is now the number one bestseller.45
8) VARIATION IN TACTICSIn the midst of difficulties we are always ready to seize an advantage so we may
extricate ourselves from misfortune46
This section talks about the art of Judgment. Good tactics also means knowing what NOT
to do. It is not enough to know your business and environment well; you also need
versatility of mind.47
In 1978, the government of India asked certain companies to dilute their equity or to
disinvest. IBM and Coca-Cola chose to leave the country. This was the right decision for
both the companies as they could re-enter the country later.48
9) THE ARMY ON THE MARCHWhen envoys are sent with compliments in their mouths, it is a sign that the enemy
wishes for a truce.49(71)
The ability to read your environment correctly and forecast effectively based on the
current behavior of your competitors, economy, potential customers and even
stakeholders.50
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47 Supra note 16
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The Print Rave community hybrid has been effective in combining Kodaks quantitative
and qualitative research initiatives, resulting in a more comprehensive understanding of
consumer behavior and trends.51
10) TERRAINThe power of estimating the adversary, of controlling the forces of victory, and of
shrewdly calculating difficulties, dangers and distances, constitutes the test of a
great general.52
In anything we do, we will encounter points of resistance. How we position ourselves
may result in assorted advantages and disadvantages.53
Honda is interested in the needs of its associates. Their comprehensive benefits program
is designed to provide associates and their families with the resources needed to take care
of themselves today and in the future.54
11) THE NINE SITUATIONSStrike at its head, and you will be attacked by its tail; strike at its tail, and you will
be attacked by its head; strike at its middle, and you will be attacked by head and
tail both.55
According to Sun Tzu, there are 9 common stages in any campaign. He prescribes
reactions to each one in terms of old world battle scenarios. Some prescriptions are
obvious. Sun Tzu compares a Skillful tactician to a species of mountain Snake due to his
ability to react quickly.56
Compared to other countries, Japan spends the least time to develop its products. This is
because Japan uses the copycat technique to design the copied product and make it their
own style.57
12) THE ATTACK BY FIRE51 Supra note 27
52 Supra note 4, 80
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55 Supra note 4, 91
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Unhappy is the fate of one who tries to win his battles and succeed in his attacks
without cultivating the spirit of enterprise; for the result is waste of time and
general stagnation.58
This next segment does seem a little esoteric especially if trying to apply to contemporary
business models Sun Tzu talks about 5 ways to attack by fire. Nevertheless, it can be
seen as a reminder on the strategic ways you can mount an offensive campaign to any
competitor (from the inside).59
The Parker is one of the most successful pens ever produced and is instantly
recognizable, making it a design icon. It was voted as the fourth best industrial design of
the twentieth century.60
13) THE USE OF SPIESSpies are a most important element in water, because on them depends an armys
ability to move.61
Sun Tzu warns us against wasteful campaigns that expend a lot of resources or hours of
labor when a simple use of intelligence or Foreknowledge would be more efficient.62

Once interpreted, the tactics mentioned in The Art of War can be applied to a business to mean
the following strategies-63

Know yourself, your opposition, and the environment within which interaction will occur.
Keep attention of all resources and related action focused on achieving strategic
objectives as promptly as possible.
Match the suitability of strategies and tactics to the market's phase, section, pattern, and
volatility.
Understand, and guard against, the inherent disadvantage in every advantageous
situation.

58 Supra note 4, 106

59 Supra note 16
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62 Supra note 16
63 http://www.strategies-tactics.com/suntzusummary.htm (9/09/13, 3:57pm)
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CONCLUSIONThe Art of War although being a book on war strategies, is being used extensively in the business
field. Business schools all over the world use the book as study material. Also, many CEOs,
executives and accomplished businessmen use the tactics mentioned in The Art of War to achieve
their goals.
Many people at first glance take the strategic approaches of the Art of War to be aggressive.
However, Sun Tzus work is quite the opposite. Etiquette and humanity is stressed in all issues.
The book focusses heavily on the value of partners, networking and not creating enemies. The
fact that the Art of War stresses on the importance of alliances can be clearly compared to
partnering in the business field. The book also provides an insight into leadership and people
management.
Fighting a war requires a great deal of planning, organizing, recruiting (staffing), directing and
controlling. These 5 requirements are the steps involved in the management of a business
organization. Since fighting a war and running a business follow the same steps, the same
strategies, although interpreted differently, can be used in both cases. So, it can be concluded that
The Art of War being a book on war strategies can be interpreted differently and be used in the
business world with great success.

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