210 • 100 GREAT BUSINESS IDEAS
Competing means striving to get ahead of the competition, but
hardball goes further: it is about relentlessly developing and then
sustaining a clear gap between you and your nearest rivals. It is
highlighted in the article “Hardball Strategies” (Harvard Business
Review, September 2006, by Lachenauer, R.; MacMillan, Ian C.; van
Putten, Alexander B.; Gunther McGrath, Rita; Stalk, George Jr.).
The idea
It is fashionable to think that playing tough is doomed to failure:
that playing hardball is inherently cynical, bereft of virtue, values, or
decency, and lies behind the high-profi le failures of Enron and others.
This is untrue. Hardball does not mean being criminal or even
unethical, but it does mean being determined and single-minded.
Wal-Mart became hugely profi table and the biggest retailer in
the world by explaining to suppliers exactly how goods should be
delivered. Suppliers were given computer information enabling
them to track consumer purchases and to help manage inventory,
they were told when to resupply Wal-Mart warehouses, and told to
deliver only full truckloads at a given time. This system, which is
constantly refi ned, enables Wal-Mart to remove wastage and cost
from its supply chain, improving effi ciency and margins.
In practice
Hardball has several guiding principles. First, strive for “extreme”
competitive advantage. Regulators may worry about market
dominance, hardball players do not. Dominance only occurs in
(^93) HARDBALL