Judo Business Strategy

Dictionary Says

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 Says

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.

comments powered by Disqus
Hot Definitions
  1. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  2. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  3. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  4. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  5. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  6. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
Trading Center