Reader Praise:

"A rare good book this year. Professor Gong also gave a lecture at our company—he is truly a remarkable talent. Defeating your opponent is the last resort; the best option is to achieve your goal without fighting."

"The author explains Sun Tzu's Art of War in a simple yet profound way, seamlessly integrating it with modern management. The logic is clear, and the whole work feels cohesive."

"The author is indeed an expert in both military science and management. The management framework is complete, and the case studies are rich and relevant."

★ In an era of intensified uncertainty and fierce competition, the 12 core concepts from a 2,500-year-old military classic help you develop strategic thinking and become a "skilled commander" in the business arena.

★ The latest work by Professor Gong Yuzhen, standing director of the China Sun Tzu's Art of War Research Association and professor of management at the National School of Development, Peking University! With 30 years of dedicated study of "The Art of War" and a dual background in military science and management, he deeply integrates ancient warfare wisdom with modern business competition, offering unique and actionable strategic insights.

★ Using a wealth of vivid business cases, this book vividly demonstrates the inspiration and application of The Art of War in management and operations.

★ The 12 core concepts span three dimensions:
- Foundational organizational management ("Five Fundamentals" and "Seven Considerations")
- Nine principles of competitive strategy (Overall Victory, First Victory, Leveraging Momentum, Striking Weaknesses, Deception, Concentrating Force, Initiative, Adaptability, Foresight)
- The essence of leadership ("The Way of the Commander")

No enterprise operates without competition, and no enterprise can do without strategy.

Since 2020, the economic landscape has grown increasingly complex and volatile, with rising uncertainty and intensifying competition. Under such circumstances, how can companies formulate development strategies that suit the times and their specific circumstances? How can they stand out in fierce and brutal competition? How can traditional Chinese wisdom help businesses grow?

As a military classic passed down for over 2,500 years, The Art of War remains highly esteemed today because few have thought about warfare and victory as thoroughly and profoundly as Sun Tzu. From a strategic perspective, it reveals the fundamental elements and principles of winning in conflict. In other words, The Art of War is a monograph on the theory of competition.

By examining the competition businesses face through the lens of strategies distilled from the brutal "high-intensity competition" of warfare, we can often better understand the essence of competition and the path to victory.

The author spent ten years researching strategy and military classics at the Academy of Military Science and sixteen years teaching strategy and leadership at Peking University, giving him a dual background in military science and management. Based on 26 years of studying The Art of War, the author breaks away from the original chapter structure and distills twelve core concepts from Sun Tzu. These cover the deep foundations of organizational management (the Five Fundamentals and the Seven Considerations), nine principles of competitive strategy (Overall Victory, First Victory, Leveraging Momentum, Striking Weaknesses, Deception, Concentrating Force, Initiative, Adaptability, Foresight), and the essence of leadership (The Way of the Commander). Drawing on a wealth of vivid case studies, the book systematically explores the inspiration and application of The Art of War to management and operations, helping managers become "skilled commanders" in their own right.

Gong Yuzhen

Doctor of Military Science, Professor of Management at the National School of Development, Peking University; Associate Dean of the BiMBA Business School, Deputy Director of the Academic Committee, and EMBA Academic Director. Former Associate Researcher in the Strategy Department of the Academy of Military Science; Visiting Scholar at the East Asia Studies Center, Cornell University; Board Member of the China Sun Tzu's Art of War Research Association.

He has authored more than ten books, including The Historical Dimensions of Management, An Analysis of Chinese Strategic Culture, The Path to Victory: Sun Tzu's Art of War and the Principles of Competition, Twelve Lessons on Zeng Guofan's Leadership, The Great Way Is Simple: Zeng Guofan and Chinese-Style Leadership, and translated The U.S. Army Leadership Field Manual: Skills, Strategies, and Methods for Leading in Any Situation. He has led or participated in over ten national and military research projects and published nearly 100 academic papers. He has received the National Book Award Special Prize, the Academy of Military Science Outstanding Research Achievement Award, the First Prize for Academic Publications from the China University Presses Association, the China Sun Tzu's Art of War Research Association Outstanding Achievement Award, and the Peking University National School of Development Excellent Teaching Awards for both the Economics Double Degree program and the EMBA program.

Recommendation Foreword I – Using the Wisdom of Military Strategy to Illuminate Business Operations – Wu Rusong VII
Recommendation Foreword II – Building Your Own Strategic Thinking System – Chen Chunhua XI
Recommendation Foreword III – Clarifying Confusion and Finding a New Path to Prosperity – Song Zhiping XV
Preface

Lecture 1 – The Five Fundamentals: The Five Key Elements of Management
The Way aligns the people with their leaders 003
Long-term success is always rooted in values 008
When timing aligns, the world works with you; when fortune turns, even heroes struggle 014
Terrain selection is the core of the art of command 018
Four dimensions for analyzing terrain 022
The Commander: wisdom, integrity, humanity, courage, and strictness 029
An army is victorious through discipline 035
The Five Fundamentals: The first strategic management model 040

Lecture 2 – The Seven Considerations: Seven Dimensions of Comparison
Which sovereign has the Way? Which commander has ability? 047
Who gains heaven and earth? Whose laws and orders are followed? 055
Whose forces are stronger? 059
Whose soldiers are better trained? 063
Whose rewards and punishments are clearer? 069
The difference between Go and chess 079

Lecture 3 – Overall Victory: Four Levels of Competition
The best strategy is to outmaneuver the enemy’s plans 085
Learn to think strategically 091
The next best is to outmaneuver through alliances 095
Why Netscape and Sony failed 099
The next best is to outmaneuver in the field 104
Attacking cities is the last resort 109
The pyramid of competitive strategy 113

Lecture 4 – First Victory: Timing Offense and Defense
First ensure you cannot be defeated: guarantee you don’t lose 121
Then wait for the moment you can defeat the enemy: seize the opportunity to win 126
Strategic opportunities require sufficient patience 132
Do not fight battles without a winning chance 140
Take calculated risks 145

Lecture 5 – Leveraging Momentum: Amplifying Resource Efficiency
A skilled commander seeks victory from momentum, not from blaming others 153
Use the leverage effect of momentum 159
Principles of creating momentum: make it steep and short 165
Momentum has no constant form: beware the traps behind it 171

Lecture 6 – Striking Weaknesses: Choosing the Direction of Breakthrough
Avoid attacking the enemy’s strengths 177
Start from where the opponent is weak 182
Hit critical yet vulnerable nodes 189
Find the weakness within the strength 192
Exploit the opponent’s carelessness and negligence 197
The deadliest strike often does not come from the front 203
Attacking the mind is the highest form of striking weakness 206
Keep investing after the breakthrough 212

Lecture 7 – Deception: Applying Competitive Tactics
Striking weaknesses requires deception 219
Surprise is the essence of strategy 223
Use tactics to lower the cost of victory 229
Success does not depend solely on your own actions 233
Microsoft, Audi, and Shuanghui: why they won 240

Lecture 8 – Concentrating Force: Focusing Strategic Resources
Concentrate your forces toward a single objective and strike from a thousand miles away 249
Never chase multiple goals at once 255
Do not expend strength on non-strategic points of opportunity 260
Accept losses in local and secondary directions 264
Successful concentration requires tactical cover 271

Lecture 9 – Initiative: Controlling the Situation
Always dictate the terms to your opponent 281
You fight your way; I fight my way 285
Take proactive offensive action 290
Turn strategic passivity into tactical initiative 296
First seize what the enemy treasures, and they will heed you 302

Lecture 10 – Adaptability: Flexible and Agile Maneuvering
Military forces have no constant form; water has no constant shape 313
The Four Crossings of the Chishui River were not pre-designed 317
Straw sandals have no pattern; weave as you go 323
Stubborn defense by a small force only leads to capture by a larger one 328
Be like water: build an organization that flows like water 333
You need to find the things that do not change 336
Adjust to circumstances: learn to dance with uncertainty 340

Lecture 11 – Foresight: Analyzing the Competitive Landscape
Behind “First Victory” lies “Foresight” 349
The failure at Gallipoli and the success at Pearl Harbor 353
Reveal nothing while discerning everything about the enemy 358
Know the enemy, know yourself, know heaven, know earth 362
Use every possible means of intelligence 367
Enter the enemy’s mind and heart 372
Why we struggle to see the truth 381
Three pieces of advice about “knowledge” 389

Lecture 12 – The Way of the Commander: Leadership in Dynamic Environments
Advance not for fame, retreat not to avoid blame 403
Share the same will; be in harmony with your people 410
Calm and profound, upright and disciplined 415

Appendix
Annotated The Art of War 423
Original Text and Translation of The Art of War 434
References 465
Afterword 472