Friday, May 22nd 2020

Hidden judo strategies


One of the most under-appreciated strategies in business is one from the martial arts.

COVID-19 has brought many businesses to their knees. Ambitious growth strategies have been replaced with survival tactics.

Many headlines seem to suggest that these decisions are purely reactive, "defensive" moves, like the shift to WFH (work-from-home). 

For example, here's what one retail consultant said: “There’s no other option [besides moving online]... Otherwise, you let someone else have your business. That’s why even Costco ... TJ Maxx ... are going online.”

But one of the most under-appreciated strategies in business is one from the martial arts: the "judo strategy." Or taking your competitor's strength and turning it to your advantage.

Say there's a stodgy incumbent that relies on cultural perks like unlimited snacks to attract top talent. A savvy startup that can quickly reposition itself to have perks for a remote-first world (think: Zoom poker tournaments) can exert a seamless judo move. "Enjoy perks? We have the best digital perks in town." The incumbent's previous strength now shifted to the startup. Coinbase is a great example of this.

We've seen examples of strategic judo across our Flagship portfolio recently.

For example, brick-and-mortar stores historically had a strong advantage: discovery. Browsing in-store had an element of intimate exploration that the internet found tough to match. But Facebook, sensing an opportunity during quarantine, just launched Shops which enables its users to connect their Instagram discovery to purchasing. Judo move.

Many strategies these days are in fact reactive, don't get us wrong. But some go beyond just that - they react by taking their opponents' momentum and siphoning it for themselves.

Judos can be very lucrative investments if identified before the herd catches on.

Back to Research ↗

Learn with titan

Investment articles and resources

Become the smartest investor you've ever been through straightforward, easy-to-read investment articles.

Robo Advisors vs. Index Funds: What Are the Main Differences?

What Are Cyclical Stocks & How Do They Work?

How Much Are Robo-Advisor Fees?

What Is the Rule of 72?

Let's Get Started

Ready to become a client?

Create an account with us in two minutes.

Or scan to get the app

We're building the best investment platform, ever

Titan Global Capital Management USA, Inc ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept our Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. The introducing Broker Dealer is Titan Global Technologies LLC, a registered broker-dealer and member FINRA/SIPC. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures. Contact: 508 LaGuardia Place NY, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

© Copyright 2022 Titan Global Capital Management, Inc. All Rights Reserved.