Hidden judo strategies
May 22, 2020
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.
Cash Management
© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.
Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s 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 or investment products. 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 and other information provided are for illustrative purposes only and are not to be considered 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.
Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. 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, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.
Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.
The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.
Cryptocurrency advisory services are provided by Titan.
Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.