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Disrupting Market Equilibrium to Your Advantage is the Result of Good Analysis and Good Strategy

By Leah Speser posted 01-09-2014 03:24

  

Comments on Sun Tzu’s The Art of War, edited by Dick Cooledge, Comptche Press, 1927.

 

Sun Tzu: “Using what you have learned assess your advantages and disadvantages, then create the unit that will conduct your mission or battle. We call the unit a force because force is your way to control the balance of power in accordance with your advantages.”

           

Raven: “When nature is in balance there is an equilibrium. A rock resting near the top of a mountain scree is in equilibrium. With only a little force, the rock can be made to roll and the scree will avalanche. As with nature, so it is with all life, for our lives are also a part of nature. If we examine the balances in our lives, we can use force sparingly. Why work harder than is necessary.”

 

Poor Richard: “In a market where there are many players conducting many transactions, there are periods of market equilibrium. In a market equilibrium, the goods traded and their prices are stable. The canny merchant watches the transactions and the players to determine just how stable is the equilibrium. Sooner or later, the needs of some parties will change and the value of the goods being offered will increase or decrease in value. When the equilibrium is wobbly, the canny merchant disrupts the market equilibrium and accelerates its collapse. . By leveraging the business' competitive advantages cleverly, the merchant can create a new and more favorable equilibrium.”

 

© Phyl Speser, January 8, 2013

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