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.
comments powered by Disqus
Hot Definitions
  1. Legal Monopoly

    A company that is operating as a monopoly under a government mandate. A legal monopoly offers a specific product or service at a regulated price and can either be independently run and government regulated, or government run and regulated.
  2. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  3. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  4. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  5. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  6. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
Trading Center