Lanchester Strategy

Dictionary Says

Definition of 'Lanchester Strategy'

A war strategy that has been successfully applied in the business context to entering new markets. The strategy is named after British engineer Frederick W. Lanchester, who published the laws governing the war strategy in a landmark publication titled "Aviation in Warfare: The Dawn of the Fourth Arm" in 1916. In business, the strategy is typically used to choose market types for new and existing businesses, in an attempt to find the easiest markets to penetrate.
Investopedia Says

Investopedia explains 'Lanchester Strategy'

Lanchester's laws were implemented in successful war strategies by the Allies in World War II. After World War II, renowned quality expert Edward Deming applied the laws into operations research. The Lanchester Strategy was introduced in Japan in the 1950s and popularized by Japanese consultant Nobuo Taoka in the 1960s. The Lanchester Strategy was increasingly used to capture market share, with Canon being one of the first companies to utilize the strategy globally during its fierce battle with Xerox in the photocopier market in the 1970s and 1980s.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Market Share

    The percentage ...
  2. Market Penetration

    A measure of the ...
  3. Market Saturation

    When the amount ...
  4. Marketing

    The activities ...
  5. Viral Marketing

    Internet ...
  6. Boom

    A period of time ...
  7. Industry

    A classification ...
  8. Prisoner's Dilemma

    A paradox in ...
  9. Price Risk

    The risk of a ...
  10. Illiquid

    The state of a ...

Articles Of Interest

  1. Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  2. What is an economic moat?

  3. Economic Moats: A Successful Company's Best Defense

    Find out why some companies thrive while others flounder.
  4. The Impact Of Recession On Businesses

    Find out how this economic cycle affects both small and big business.
  5. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  6. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  7. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  8. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  9. Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.
  10. 5 Nobel Prize-Winning Economic Theories You Should Know About

    Here are 5 prize-winning economic theories that you’ll want to be familiar with.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center