{"id":351,"date":"2013-04-23T01:29:00","date_gmt":"2013-04-23T06:29:00","guid":{"rendered":"http:\/\/flevy.com\/blog\/?p=351"},"modified":"2013-04-23T01:35:40","modified_gmt":"2013-04-23T06:35:40","slug":"what-would-you-do-to-protect-your-business","status":"publish","type":"post","link":"https:\/\/flevy.com\/blog\/what-would-you-do-to-protect-your-business\/","title":{"rendered":"What Would You Do to Protect your Business?"},"content":{"rendered":"<p>This month marks the 70<sup>th<\/sup> anniversary of the last major U-boat \u201cwolf pack\u201d battle in the North Atlantic of World War II.\u00a0 Both sides realised the strategic importance of dominating the sea lanes between America and England.<\/p>\n<p>The victor on the sea would ultimately win the war.\u00a0 If the English supply lines were cut, they would simply run out of materials and food; forcing them to surrender.\u00a0 If the English succeeded, then the industrial muscle of America would ultimately lead them to victory. In a pitched battle that lasted the entire length of the war; over 100,000 lives and nearly 4,500 vessels were lost in this struggle in one of the most inhospitable oceans in the world.<\/p>\n<p>In April 1943, convoy \u201cONS 5\u201d \u2013 a group of 43 merchant ships was dispatched from Liverpool, UK bound for Halifax, Canada where they were scheduled to bring vital supplies to the allied war effort.\u00a0 They were escorted by 16 naval ships of varying size and capacity.<\/p>\n<p>The voyage was nothing less than remarkable.\u00a0 Firstly, the weather in the North Atlantic was so foul; it made many hardened sailors question their sanity.<\/p>\n<p>In a storm that lasted for several days, their ships were battered by 12 meter waves and winds blowing a brisk 100km\/hr.\u00a0 In fact, the weather was so bad early on in the voyage, 2 of the merchant ships collided, forcing their withdrawal to Iceland for repairs.<\/p>\n<p>The rest of the convoy scattered over nearly 2,500 square kilometers of inhospitable ocean and the \u00a0naval escort was forced to act like a sheep-dog on the high seas; rounding up stragglers in an amazingly inhospitable environment. However, the weather was the least of their concerns given what was waiting for them in the mid-Atlantic.<\/p>\n<p>Far from the protective gaze and relative safety of the English or Canadian coast was no less than 3 strategic groupings (or wolf packs) of U-boats lined up to intercept the convoy.\u00a0 Covering the north, mid, and south routes to Canada was no less than 58 German U-boats.\u00a0 They simply couldn\u2019t help but find the convoy and wreak havoc on it.<\/p>\n<p>After about 10-days of sailing with a few minor skirmishes with solitary U-boats; contact was then made with the southernmost wolf pack lying in wait for them.\u00a0 In a desperate battle over just 48 hours, 13 of the merchant convoy or 63,000 tonnes of shipping was sent to the bottom of the Atlantic.<\/p>\n<p>Their escort however had sunk 7 U-boats and had badly damaged 6 more.\u00a0 By the time the U-boat admiral called off the attack, over 480 lives on both sides of the conflict had been lost.<\/p>\n<p>Somewhat remarkably, despite the losses of nearly 30% of the merchant ships en-route to Canada, this was seen as a significant victory by the Allies.\u00a0 They had taken a \u201cwhatever it takes\u201d approach to protect the convoy, and as a result they were never again to see the same concentrated attacks on convoys throughout the remainder of the war.<\/p>\n<p>When your business is under attack how should you respond?\u00a0 Many businesses can follow a simple 4-step process to identify and respond to competitive threats.<\/p>\n<ul>\n<li><b><i>First, who is attacking you and why?\u00a0 <\/i><\/b>What are their objectives?\u00a0 What is it about your competitor\u2019s offer which is attractive to your customers?<\/li>\n<\/ul>\n<ul>\n<li><b><i>Second, are they a real threat or a transient nuisance?<\/i><\/b>\u00a0 Are they simply trying to carve out some market share, or are they genuinely trying to crush you?\u00a0 If it is the latter, what do they have which you don\u2019t which would make their objective achievable? Do they have better supplier relations, cheaper cost structures?<\/li>\n<\/ul>\n<ul>\n<li><b><i>Third \u2013 what is the outcome you are trying to achieve?<\/i><\/b>\u00a0 Does another competitor in the marketplace make sense?\u00a0 Sometimes additional activity in a sector is a good thing.\u00a0 They advertise; raise the profile of products and services, reducing the amount of time and money you need to invest in general education.\u00a0 Alternately, competition can be very bad where there is a limited market share.\u00a0 In that instance, you need to restore the balance in your market segment quickly.<\/li>\n<\/ul>\n<ul>\n<li><b><i>Fourth, what is the appropriate level of response?<\/i><\/b>\u00a0 The British navy in this convoy had a ratio of 1 vessel for every 3 merchant ships they were trying to protect.\u00a0 The Germans had a ratio of 1 U-boat available to cover every single merchant vessel in the convoy.\u00a0 Clearly both sides were intent on destruction of the other.\u00a0 But it will not always be that way.\u00a0 Look at the bigger picture.\u00a0 Are you being attacked by a minnow or a real threat to your survival?\u00a0 You then can determine an appropriate level of response to achieve your commercial objectives.\u00a0 In other words, don\u2019t use a sledge hammer to crack a peanut or conversely, don\u2019t bring a knife to a gun fight.<\/li>\n<\/ul>\n<p>At the end of the day, you are trying to protect your livelihood and your way of life.\u00a0 The commercial world does not stay static.\u00a0 Disruptive market players will always exist.\u00a0 Their objective: market dominance (at your expense).\u00a0\u00a0 Like the convoy battles in the Atlantic 70 years ago, you may well be in a fight for your businesses survival.<\/p>\n<div class=\"aside\">Need to brush up on business strategy? Check out these <a href=\"https:\/\/flevy.com\/function\/Strategy-Marketing-and-Sales-strategy\">related business frameworks on Flevy<\/a>. \u00a0Learn how to develop a sustainable competitive advantage against your rivals.<\/div>\n<p>How are you going to respond to protect your business and your way of life? \u00a0Share in the comments below.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This month marks the 70th anniversary of the last major U-boat \u201cwolf pack\u201d battle in the North Atlantic of World War II.\u00a0 Both sides realised the strategic importance of dominating the sea lanes between America and England. The victor on the sea would ultimately win the war.\u00a0 If the English supply lines were cut, they&hellip;&nbsp;<a href=\"https:\/\/flevy.com\/blog\/what-would-you-do-to-protect-your-business\/\" rel=\"bookmark\"><span class=\"screen-reader-text\">What Would You Do to Protect your Business?<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[81],"tags":[131,132],"class_list":["post-351","post","type-post","status-publish","format-standard","hentry","category-strategy","tag-business-management","tag-competition"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=351"}],"version-history":[{"count":6,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/351\/revisions"}],"predecessor-version":[{"id":357,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/351\/revisions\/357"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}