What is judo’s business strategy?
A judo business strategy is a plan to run a business using its speed and agility to mitigate the effect of its competition. The strategy anticipates and takes advantage of market changes through new product offerings. Judo’s business strategy has three components:
- Movement (use the smaller size of a company to act quickly and neutralize the advantages of a larger competitor)
- Balance (absorb and counter the movements of competitors)
- Leverage (use the strengths of competitors against them)
Small businesses can use their strong foundation with a commodity and its power to challenge a larger competitor.
Understanding Judo Business Strategy
The strategy is taken from the principles of judo, a Japanese martial art, and was used as a metaphor in the book “Judo Strategy (2001)” by David B. Yoffie and Mary Kwak. The origins could be traced further back to “the economics of judo,” a term coined by economists Judith Gelman and Steven Salop to describe a strategy when starting a business in an industry dominated by a major competitor.
One of the major aspects of judo is using the height of a taller opponent against himself. As a business strategy, it is designed to give small businesses an edge by using their agility and ability to react faster to market changes as a competitive advantage.
How Judo’s Business Strategy Works
Startups and other small businesses might look to implement this strategy when they face larger competitors in their market. The principles and tactics of the strategy emphasize the main activity being developed rather than supporting ideas. This scenario is very similar to judo practitioners competing against each other and finding a solid foundation at the start of a match.
Another principle is to stay on the offensive without being drawn into a direct attack. This offense is an effort to exhaust the opponent by moving attack points quickly without allowing the opponent to lock onto solid defense or push back directly.
By altering where and how the leverage is applied, a judo practitioner seeks to upset his opponent’s balance and deflect any counterattacks the opponent might launch. From a business standpoint, a small firm could use its flexibility and ability to shift its points of attack to confuse a larger competitor who could have rigidly solidified its operations in certain directions and struggled to s ‘adapt.
Quick Fact
Southwest Airlines has been successful in gaining market share with its “baggage fly free” strategy, but the major airlines have not been able to follow this strategy because they rely on baggage fees as short-term revenue. However, in the long run, this has the effect of reducing consumer goodwill.
Preparing and planning the pivot from a judo perspective means using situational and spatial awareness to think about where and when to change offensive moves. This allows a business to take advantage of a new opportunity to attack. Startups, in particular, must remain aware of their position, their condition and their perspectives to move forward by adopting new approaches.
Key points to remember
- A judo business strategy uses the small size of a business as an advantage over its larger competitors.
- Small businesses can generally react more quickly and nimbly to changes in the market, which can allow them to steal market share.
- A judo business strategy anticipates and takes advantage of market changes through new product offerings.
Sometimes the initial plan does not lead to the success initially envisioned. By looking at the opportunities that arise, the company can better position itself with a new approach.
