In the “Art of War” Sun Tzu defines three conditions that determines the outcome of a battle:
1.
If you know the enemy and know yourself, you need not fear a hundred battles.
2.
If you know yourself but not the enemy, for every victory gained you
will also suffer a defeat.
3.
If you know neither the enemy nor yourself, you will succumb in every
battle.
Now let’s apply these conditions to a business environment.
1.
If you know your customers, your competitors and know your own
business, you need not fear, you will increase sales revenue, improve
profits and gain market share.
2.
If you know your own business but not your customers or competitors,
for every increase in sales revenue you will reduce profits and lose
market share.
3.
If you know neither customers, competitors nor your own business, you
will succumb to market forces and eventually lose everything.
As you can see, it certainly helps when defining the requirements for any business to achieve a
successful outcome.