Sunday, August 7, 2011

Business Strategy

Management by judo, an old/new approach to strategy in business


Management by Judo is an old/new approach to strategic action. Basic techniques like (a) the 'puppy dog ploy' and (b) 'define the competitive space' enshrine the principle of competing with a stronger player only where he's weak.

David B Yoffie and Mary Kwak of Harvard Business School describe the puppy ploy as keeping a low profile and avoiding head-to-head battles (which you will almost certainly be too weak to win).

Combine (a) and (b) to create a window of opportunity, they advise: then 'follow though fast', before opponents can react. Thereafter, other winning stratagems include 'grip your opponent', 'avoid tit-for-tat', both self-explanatory, and 'practice ukemi', which isn't: it means the technique of falling safely and thus being able to resume battle more effectively.

Whatever you do, though, avoid the Netscape cheek ('we'll make Windows obsolete') that provoked Microsoft into decisive retaliation. Netscape's failed strategy is known as 'mooning the giant'.

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