Right now, terrorism is the best example of start up strategy. The thing that is so compelling about the current strategies of terrorists is that they are taking on an establishment, and winning comfortably with far fewer resources.
The unlimited supply of firepower of the competitors (Western Governments), has not created any advantage. It’s irrelevant because the strategy of the terrorists is to create a new playing field. They don’t compete on the terms of the incumbent.
Don’t confuse what I am saying here, I am not espousing the virtues of terrorism. I’m simply pointing out their tactical brilliance in the form that a start up company should take heed from.
Let’s consider a strategic review of terrorism:
Product.
- Their main product is fear.
- and guess who feeds on that? Mainstream media. Great, wont need to spend any money on communications or advertising to the target. CNN and FOX will do that for us. Seems the revolution might just be televised
- 911 global brand awareness for Al Qaeda in 1 hour.
How do they take their product of ‘Fear’ to the market place?
- Focus on core markets and dominate them – New York,
London.
- Large launch events (September 11 for Al Qaeda)
- Which create free media & publicity (3 weeks live coverage)
- Huge brand awareness generated through ‘newsworthy & outrageous’ activities (911)
- Networking using technologies such as the web to evangelize their cause.
- They recruit ‘believers’ to evangelize the brand to the point that they are prepared to die for the ‘brand’. And you thought Apple had loyal followers.
- You can’t fight what you can’t see. They are ensconced within the enemy populous. So how can they be attacked?
- They perpetuate their organisation more strongly by creating increased racism by operating within enemy territory. This breeds support with potential new recruits.
- Learnt skills from their competitor (CIA) before going out to launch against them.
- They think small. But have a BIG IMPACT. They don’t try and dominate the world at launch, just important parts of it – World Trade Centre.
- They use the competitor assets against them. Classic insurgent strategy (Art of war). Boeing 767’s, mass transport, US flight schools, CIA, Halliburton, Hotmail, Youtube, Google Earth. Significantly reduces capital for launch & overheads.
- Venture capital from passionate radicals. Non traditional banking. The money comes from believers in the cause.
- The cost of entry to the market was low. They did the opposite of the competitor. They invented a new competitive landscape. Attacked from within. Not over boundaries. This was unexpected from the incumbent and it was impossible to defend.
- Terrorists have a Single Minded Proposition. Disrupt the western way of life. Instill fear & maintain it.
In short, the US, UK and Australia governments still haven’t realized they can’t win this battle with traditional methods. The battle is never won with resources, it’s won with strategy and creativity.
As an organization Al Qaeda or terrorism in general, sadly has many lessons for any Entrepreneur.
