Judo Business Strategy

Categories: Financial Theory

Bigger isn’t always better; just ask any Judo black belt. Judo gurus can throw, pin, and otherwise immobilize opponents ten times their size, and they do it with a mix of movement, balance, and leverage. And cool hand motions, but that last part doesn’t really apply to the next part of our discussion.

Because, as it turns out, Judo isn’t just for martial artists anymore. Nope...it’s a thing in the business world, too. The Judo business strategy is one that can be used by small businesses trying to make their way in the big, bad world of large corporations and stiff competition. It takes the tenets of movement, balance, and leverage, and applies them to organizational behavior.

First, the small company crouches (like a tiger) and circles. It gathers its strength by focusing on its primary market, producing and selling its best goods and services and expanding its customer base. It stays below the radar of its big, scary competitors, but is slowly priming itself for the attack. This is the “movement” phase.

Then, in the “balance” phase, the company finds its footing. Maybe it starts making deals with other companies behind Big Bad Competitor’s back. Maybe it designs a business platform that helps it adapt a lot faster to changes in its market sector. Maybe it does both. The purpose here is to make sure that the little company is not only poised for action, but in a position to be flexible if the game suddenly changes.

And finally, in the “leverage” phase, the small company...strikes. Using its diminutive size and flexibility to move in unexpected ways, it attacks its prey like a cobra, taking bites and allowing its venom to seep into the market. Except in this case, it’s not venom...it’s competition. And since the small company is so agile, so Judo-like, Big Bad Competitor can’t predict or keep up with the attacks.

Are they launching a new product line here? Are they acquiring a supplier there? Nobody knows. The Judo business strategy has kept Big Bad Competitor on its feet.

And in the meantime, our itty-bitty company has managed to wrangle its way into a larger market sector as an independent and viable player. Nice job, little company. Movement, balance, and leverage FTW.

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