You are on page 1of 2

JUDO STRATEGY

The basic model makes a few important assumptions: the incumbent faces a single challenger, the challenger
has no cost advantage, and the incumbent must charge all customers the same price (i.e., price discrimination
is impossible). Based on these assumptions, the logic works like this: Assume that the incumbent supplies ten
customers with widgets for $50. If you offer to supply the entire market at $40, the incumbent will beforced
to match your price or lose all of its sales. By contrast, if you only have enoughcapacity to sell to one
customer, the incumbent will find it more profitable to accommodateyour entry by sticking to his original
price and selling to the remaining nine. The idea behind judo economics' turning your opponent's size into a
disadvantage has alot of intuitive appeal. But judo economics has important limitations as well. First, it is
verydifficult to implement. It's one thing to say that you won't threaten bigger competitors. It's quite another
to convince them that you mean what you say. Moreover, judo economics looksfar less promising once the
assumptions behind the original model are relaxed. But the greatest weakness of judo economics is that it
sets its sights too low. Judo economicsmay allow you to survive, but only at the cost of staying small. For
most managers and companies, this is not enough. You don't want to skulk around the side lines; you want to
getout there and win. Consequently, judo strategy picks up where judo economics leaves off. Judo strategy
provides a set of tools that allow you to do more than just survive in the face of daunting competition; they
show you how to thrive and grow. It believes that companies canwin against larger or stronger competitors
by mastering three core principles: movement balance and leverage. Judo strategy is an approach to
competition that emphasises skill, rather than size or strength. Below we discuss 10 techniques that
companies have put to work. Depending on the natureof their competition, firms can combine and implement
these techniques:
1. The puppy dog ploy : Here the challengers keep a low profile and avoid head-to-head battles when they
are too weak to win.
2. Define the competitive space: Here you seize the initiative by defining a competitive space where u can
take the lead. Every champion has areas where he is weak. Take advantage of these weak points to define
a
game you can win.
3. Follow-through fast: Next you need to strengthen your position through continuous attack. Soon your
competitors will see through the puppy dog ploy and seek to bring the advantage of superior size and
strength into play. By following-through fast, you can post pone this day of reckoning and make most of
your early lead.
4. Grip your opponent: By gripping on opponent early, you may succeed in pre-empting competition:
securing victory. Partnership, JV or equity deals are some of theways.
5. Avoid tit-for-tat: As a judo strategist, the last thing you want is to get into a war of attrition, as tit-for-tat
often becomes. Study your opponents carefully and figure out the moves you can match without getting
dragged out of your depth, and craft counter attacks that play to your strength.
6. Push when pulled: Use your opponent's force or momentum to your advantage. By incorporating your
competitor's products, services or technology into your attack, youcan throw him off-balance and confront
him with a painful choice: whether to abandon his initial strategy or to watch it fail.
7. Practice Ukemi : Ukemi is the technique of falling safely with minimal loss of advantage in order to return
more effectively to fight. By beating a strategic, you can conserve your resources and regroup in better
position for the confrontations ahead.

8. Leverage your opponent's assets: a company's greatest assets can often become itsgreatest liabilities.
Anything which represents a significant investment can become barrier to change and exploiting these,
you can find the leverage you need to win.
9. Leverage your opponent's partner: You can turn a rival's partners into false friends by exploiting the
differences among them. Set old allies at odds by creating situations where their interests are no longer
aligned.
10. Leverage your opponent's competitors: compared to the earlier two, it could be easier and more natural to
allow your competitor's competitors to wear him down.You can add value on top of his competitor's
products, build coalitions with his competitors or you can serve as a distributor for his competitors

You might also like