Judo Business Strategy

AAA

DEFINITION of 'Judo Business Strategy'

A plan for managing a company by using speed and agility to mitigate the effect of its competitors, as well as to anticipate and take advantage of changes in the market through new product offerings. The judo business strategy consists of three components: Movement (using the smaller size to act quickly and neutralize a larger competitor's advantages), balance (to absorb and counter the competitor's moves) and leverage (using the competitor's strengths against it).

INVESTOPEDIA EXPLAINS 'Judo Business Strategy'

The strategy is named after judo, a form of Japanese martial arts and was used as a metaphor in the book "Judo Strategy" (2001) by David B. Yoffie and Mary Kwak. The origins could go further back to "judo economics," a term coined by economists Judith Gelman and Steven Salop to describing a strategy when starting a company in a sector dominated by a large competitor.


One of the major aspect of judo is to use the size of the opponent against him or herself. As a business strategy, it is designed to give smaller companies an advantage by using the perceived advantages of a larger competitor - namely size - against the competitor.

RELATED TERMS
  1. Imperfect Competition

    A type of market that does not operate under the rigid rules ...
  2. Eating Someone's Lunch

    The act of an aggressive competition that results in one company ...
  3. Economic Moat

    The competitive advantage that one company has over other companies ...
  4. Monopolistic Competition

    A type of competition within an industry where: 1. All firms ...
  5. First Mover

    A form of competitive advantage that a company earns by being ...
  6. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it ...
Related Articles
  1. Competitive Advantage Counts
    Active Trading

    Competitive Advantage Counts

  2. Advertising, Crocodiles And Moats
    Professionals

    Advertising, Crocodiles And Moats

  3. Trade On Support For The Best Exit Strategy
    Active Trading Fundamentals

    Trade On Support For The Best Exit Strategy

  4. Use The Momentum Strategy To Your Advantage
    Trading Strategies

    Use The Momentum Strategy To Your Advantage

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center