Doing business is competing with others. In an open market like Cambodia, we need to do things aggressively and make sure that we are safe a position that we’re standing. To grow the business, we might think of increase market share, by getting more share from competitors. But there are some companies, they thinks a different way. They ask themselves whether they “should increase the pie or gain the pie”. What’s the different between these two?
Increase Pie or Increase the Market Share is a traditional and quick win strategy. With this business purpose, they would anything to make sure their pie is increase and sometimes, they compromising some risks to get their goal. A lot of companies are stick with this strategy. To increase the pie, sometimes they have to do things unethical or noncompliance. In Cambodia, most of companies are trying to beats their competitors by using resources that sometimes they knows that it is not legal. Doing business by stick with this strategy, sometime, it is not long-term business, because competitors they would find the way to defend, to increase their pie as well and once our company don’t have enough resources to support that strategy, we would definitely lose the share and we’ll really hard to get it back. Increase pie share is not long-term business strategy, in my purpose. Classic example of increase the pie strategy is “Browser” market share. IE, Firefox, Chrome, Opera, Safari, they are fighting with each other to increase their market share in horizontal way. If IE’s market share increase, then Firefox will be decline. They keeping fighting each other in this way and both sites will suffer.
Gaining Pie from other Sources, looking for other opportunities to gain our pie is very important. Opportunity is out there, but we just need to explore, pick it up, polish it and make it shine. Gaining pie strategy is more likely on expand our business to more area, more customers. This is long-term business strategy. We need to invest, we need to explore and expand. There is a few companies in Cambodia that using this strategy, one of which is GlaxoSmithKline (GSK). GSK is trying to do things which other pharmaceutical companies would never imagine. GSK invest in developing healthcare system, by building healthcare centers, training healthcare professionals (HCPs) and increase access to medicine by reducing the price so that people can get the GSK’s quality products. In result, they grows consistently even they have some obstacles along the way. Now their pie is getting bigger and bigger in vertical. This example picture will show what “gaining pie” strategy would look like.
There are so many strategy to run a business, but those only fit if your business plan is fit to what your purpose is. At the end of the day, no matter which strategy you will choose, you’re the only one who’ll responsible for your own business.
Long-term business, result would never come easily, but it would come with reputation and respect. Short-term business is a war.