The principal of Judo is to use the size, weight and direction of your competitor to throw them. In Sumo, the principal is to be bigger and use your size and weight to throw the competitor. Two different approaches to the same challenge.
If you are in a business where some of the competitors are much larger, you may be able to benefit from using Judo tactics. The principles of running a Judo organization differ from running a Sumo one. As a Judo organization, we hide from our competitor; we do not try to crush them. I even go so far as to examine what they do well and let them do it. At the same time, we look for under-serviced markets and get to these markets fast.
A Sumo takes all competitors head on, trying to crush the competition. Sometimes this takes the form of a price war. Sometimes it takes a major prolonged, drawn-out investment. This works as long as you are the same size, or larger than the competition. Even then, such a long battle can sap power and ultimately profits.
Companies that die often believe they were Sumos. It is certain death for a business to fight Sumos unless they can withstand the siege.
My 8 favorite Judo tactics are:
1 – Act fast. I use my company’s size to my advantage. I can act lightning fast. In the computer business, this is a huge asset. Things change so rapidly that moving fast and being first to market is a huge advantage. Larger companies do not react quickly. Develop a reputation for being first – it gets the attention of customers.
2 – Welcome smaller opportunities. Sumos tend to say ‘no’ to a small opportunity. These areas can be very profitable for a Judo tactician. The Sumos will leave you alone. There is always a right-sized opportunity for a company of any size. Knowing your rightful place in the market can help you to thrive.
3 – Get focused. Higher focus means we know more, stock more, and sell more product of fewer manufacturers. The smaller our product listing, the more powerful we become. We know a lot about a little. That means we know the products we sell better than a Sumo, and we become a sales tool for the reseller, not just an order-taker. Could you become more focused and specialized in a business area by giving up on a part of your business?
4 – Be more flexible. We can adapt more easily to our customers and suppliers. We try not to be ruled by policy. The bigger a company gets, the more likely they are to have policy and some of it is required. As a small distributor, we can be more flexible. Are there areas your competition is ignoring that by being more entrepreneurial, you can capitalize on?
5 – Be smarter. This sounds too simple, almost embarrassing to write. Since we are smaller, we can look at the tasks we do more carefully and make sure it makes good business sense. We don’t pick up another manufacturer just to increase the size of our line card. That’s just not good business sense for us. That’s the way we have to think – and so should you.
6 – Lower your overhead. For some reason, most companies seem to choose more expensive offices and furnishings as they grow. This expectation tends to increase costs in all areas of the company that distribution, at current margin levels, can ill afford. Are there areas that you can be lower overhead than the Sumos in your field? Costs always add up on the bottom line.
7 – Foster staff loyalty – one major advantage Judo Tacticians have over Sumos is the ability to attract, motivate, and keep good people. Primarily because guerillas can be more flexible, easier to work for and give people more of a sense of accomplishment because what they do contributes more directly the company’s bottom line. I have always found there to be great power by being smaller and treating my people with respect and not just as numbers. Sumos can try to do this but it is tough for them to copy you.
8 – Just BE a Sumo. We like to enter market areas that we can dominate and specialize in. We may not be the biggest but in certain specific niches, we dominate. As long as we are the biggest in an area, we can act the part. We can under-price and over-service the competition forever. Anyone who enters our markets learns that it is expensive and often impossible to unseat us.
9 – Be personal. One thing a smaller organization can do is be more personal. People buy from people. You can foster relationships that will help you sell. Part of the way we are personal is by showing our customers what markets and products ARE profitable. There is nothing that cements a customer relationship better than making them money, because you’ll be making money for them AND for you!
10 – Be opportunistic – to sum up Judo strategy is simply to be opportunistic. Take advantage of opportunities that the gorillas cannot do. There are many companies that remain profitable by being opportunistic.
In summary, unless you are huge – think Judo. Appropriate Judo tactics for your size will win any battle.
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You can contact Jim Estill <https://www.jimestill.com/> , www.jimestill.com <https://www.jimestill.com>
