Applying the Porcupine Strategy to Business

Are you familiar with the Porcupine Strategy?

The Taiwan contingency recently became a hot topic due to remarks by Prime Minister Takaichi.
The Porcupine Strategy forms the core of the "Overall Defense Concept" proposed by former Chiefs of Staff and others as a strategy for Taiwan to prevent a military invasion by China.

<What is the Porcupine Strategy?>

The word "Porcupine" comes from the French "porc d'épine," meaning "thorny pig." While porcupines are neither agile nor huge, they possess powerful quills that make predators think twice before attacking.

Like the porcupine, the Porcupine Strategy is a concept where, when attacked by an enemy, one raises their quills to make the attacker feel that touching them will be painful, thereby discouraging the enemy's desire to invade and forcing them to stop their attack.

Instead of matching the enemy with expensive and powerful battleships or aircraft, the goal is to deploy smaller, cheaper, and highly mobile mobile missiles, underwater mines, and drones to inflict significant damage on the enemy with a limited budget.

<Application to Business Strategy>

(Defensive Measures Against Hostile Takeovers)

A representative application in business strategy is the countermeasure taken when receiving a hostile takeover bid from a large corporation.

Similar to military operations, the goal is to increase defensive capabilities rather than offensive ones, thereby raising the cost of acquisition.
Specifically, this involves strengthening the authority of the board of directors or issuing stock acquisition rights that are unfavorable to the acquirer to protect management control.

It is a strategy for survival that avoids head-on collisions with the enemy and makes them think, "I'll pay a heavy price if I attack here."

(Asset Protection Strategy)

Actively acquire intellectual property rights such as patents, trademarks, and copyrights.

Also, build a solid customer base through long-term contracts with customers to create a situation where other companies find it difficult to enter.

(Building Barriers to Entry)

Focus on developing unique technologies that others cannot easily imitate, acquire numerous industry certifications and licenses, or establish exclusive sales channels to make imitation or entry difficult.

(Niche Strategy)

These can also be called niche strategies.

o Differentiation through unique technology = Technical niche
o Monopoly of specific distribution channels = Channel niche
o Specialization in specific customer needs = Special needs niche
o Region-limited expansion = Area niche
o Intentionally limiting market size = Volume niche
o Suppressing supply to create scarcity value = Limited supply niche
o Specialization in made-to-order = Customization niche
o Setting high switching costs = Switching cost niche
o Surviving until the end in a shrinking market = Residual niche

and so on.

<Weaknesses of the Porcupine Strategy>

Because the porcupine strategy specializes in defense, it has several weaknesses.

o Because it lacks flexibility, it may not be able to respond quickly to changes in the situation. For example, if you focus on an enemy's invasion, it may be less effective against blockades or economic pressure.

o Over-reliance on it can lead to insufficient preparation for cyberattacks or economic blockades.

o It can be costly in the long term, which may limit investment in other areas.

o Due to a lack of counterattack capability, it may not be able to adequately respond to enemy attacks.

o There is also the possibility that the enemy will use tactics that exploit the weaknesses of the porcupine strategy.

To compensate for these weaknesses, it must be combined with other strategies to ensure the ability to respond to various threats.

<The Porcupine Strategy and Japanese Business Practices>

o In Japan, overt assertions are disliked, so things proceed through mutual understanding without clear refusals. This acts as a barrier that is very difficult for outsiders to enter, in other words, sharp quills.

o In Japan, long-term relationships are prioritized, and there is a habit of going to the usual place even if it is a little expensive. Because favorite shops, family doctors, and trusted vendors provide a sense of security, there is no reason to change, and it is troublesome to do so, making it difficult for competitors to enter.

o Especially in Japan, sincere character is valued more than the product itself, and it has been said that "business is about people."

o In manufacturing, skilled techniques that cannot be manualized have been passed down, and this is something that neither AI nor large companies can imitate, making it a powerful, unbreakable quill.

In this way, Japanese business practices prioritize remaining an entity that is not excluded from trust over winning in competition. For this reason, until now, actions such as comparing with other companies, price competition, and urging immediate decisions have been avoided.

<Application to More Familiar Business Scenes>

If you apply the basic philosophy of the porcupine strategy—that you don't have to win, but you should become an entity that others won't mess with, as in "it will cost you if you attack or underestimate me"—to familiar business scenes, it becomes self-defense to protect your territory and prevent unfair treatment or price cutting.

(People over products)

The most important thing in business is people. Create a situation where people think, "I would be in trouble if it weren't for this person."

Do not compete on price, but rather make price comparison impossible. In other words, while whether something is "the cheapest" can be compared, "the one who understands me best" cannot be compared, and thus cannot be attacked by others.

Secret menu items known only to regulars, contacting customers before new arrivals, advice based on genuine honesty rather than superficiality, and even "counseling not to buy"—such as saying "it's too early today," "you don't need to buy it yet," or "it doesn't suit you"—are also effective.

(Wider and Deeper)

While gathering a wide range of customers is good, it is also important to know your customers more deeply.

By grasping the customer's daily rhythm, values, likes, and dislikes, your proposals will become more perfectly suited to them.

When people feel a sense of security where they don't have to explain everything, feel that their values are understood, and feel that you remember their past, they find it troublesome to go out of their way to change.

(Don't become someone who accepts everything)

If you are thought of as someone who will do anything if asked, you will be treated as a handyman and will be unable to focus on your own actual work.

Instead of casually saying "Sure," by requiring a certain procedure, such as "Understood. Could you please fill out this request form and send an email with your supervisor's approval?", you make it "troublesome to ask this person," ensuring that only truly necessary requests come your way.

(Preventing price cutting)

In response to excessive demands for discounts or unreasonable deadlines from customers, by saying, "In exchange for a price reduction, please extend the deadline by one month and pay in advance," you can make them realize that "trying to haggle easily will cause inconvenience for them as well."

(Career defense)

To prevent layoffs or unfair reassignments, you should create a situation where you are indispensable (your quills)—such as strengthening relationships with key business figures or grasping complex past circumstances.

(Preventing psychological attacks)

You may be subjected to emotional bashing or have your achievements stolen.
To prevent this, always keep instructions in writing such as emails, and even for verbal instructions, confirm them by saying, "Is my understanding of this matter correct?" and keep your quills raised by always leaving records or evidence.

By doing so, you will be removed from their target list because they will think, "If I try to attack or frame this person, they will present evidence and I will be the one at a disadvantage."

<Summary>

The point of applying the porcupine strategy to business is not to "be aggressive," but to become a "troublesome presence" or a "costly presence."

o Clearly define and grasp the range within which your quills can reach.

o Prepare to counterattack or refuse through legitimate procedures if the other party breaks the rules.

o Without getting emotional, show your quills with a smile while calmly saying, "It's the rules."

In this way, becoming someone who is "polite but ", {never to be underestimated," this is what can be called the best porcupine strategy in business.

Thank you for reading.
I would appreciate it if you could like, follow, or tip.
I look forward to your continued support.

#WorkTips