Hardball: Are You Playing to Play or Playing to Win?

FOUR

Threaten Your Competitor’s Profit Sanctuaries

At times, wouldn’t you like to influence the behavior of a competitor? Get him to back off and not enter a segment of the market that is attractive to you? Cause him to slow down his investments in product development or production technology in areas that are key to your business?

You can influence the behaviors of a competitor if you can determine where his profit sanctuaries are. Profit sanctuaries are the parts of your competitor’s product, service, and geographic portfolio where he makes the most money. Every company has one or more profit sanctuaries, and they are important not only because they deliver healthy profits to the bottom line, but because they usually fund other—weaker or developing—parts ...