The Mind of the Strategist: The Art of Japanese Business (Summary)
An American machinery company was baffled. Its top-of-the-line forklift was technically superior to its Japanese competitor's, yet it was losing market share in Japan. Why? Their competitor, Komatsu, discovered the real problem wasn't the machine, but the narrow streets and tight warehouses of Japan. They designed a forklift that could turn on a dime in cramped spaces. The American firm was trying to win a spec-sheet war; the Japanese firm won the war for the actual customer by asking the right question.
Strategy is a Triangle: The 3Cs
Any effective business strategy must achieve a delicate balance between the company's own strengths, the needs of the customer, and the strategic position of the competition. A strategy that focuses on one C at the expense of the others is doomed to fail.
When Honda entered the US motorcycle market, they didn't challenge Harley-Davidson head-on. They identified a customer segment no one was serving: casual users who wanted a small, fun, reliable bike (Customer). They leveraged their expertise in small-engine manufacturing (Company) to create the Super Cub, avoiding direct conflict with the big-bike incumbents (Competition).
Focus on Relative Superiority, Not Absolute Power
You don't need to be stronger than your competitor in every single area. The key to victory is to identify the single most critical factor for success in a given situation and concentrate your resources to achieve a decisive advantage in that one specific domain.
A small local coffee shop can't compete with Starbucks on brand recognition or scale. However, it can achieve relative superiority by focusing on a key factor like 'the perfect espresso shot for connoisseurs.' By investing in a top-tier machine and highly trained baristas, it can become the undisputed best choice for a niche group of customers, an area where Starbucks' standardized model is weaker.
The Right Answer to the Wrong Question is Worthless
Strategists often fail because they are busy solving the wrong problems. Ohmae insists on a relentless search for the 'critical issue' by asking 'Why?' repeatedly until the root cause is uncovered, rather than just treating symptoms.
A company sees that its product sales are declining. A superficial diagnosis is 'our price is too high.' But by asking why, they might find the real issue. Why are sales down? Retailers aren't promoting it. Why? Their profit margin is too low. Why? Our inefficient logistics chain increases their costs. The true strategic problem isn't pricing—it's distribution.
Strategy is an Art, Not a Science
The best strategies emerge from insight, creativity, and intuition—not from running numbers or filling out templates. The strategist's mind, with its ability to synthesize information and make nonlinear leaps, is the most powerful strategic tool.
When Japanese brewers faced a stagnant beer market, their analysis didn't point to a solution. The breakthrough came from a creative insight: the concept of 'dry' beer (karakuchi), inspired by dry sake. This created an entirely new category, 'Asahi Super Dry,' that redefined the market, something no amount of traditional market research would have ever predicted.
