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| There is a portion of the population that does not trust Microsoft and its use of 'customer' information to market to them and hold them digitally captive. |
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| —Charlie Cullinane |
It's probably a good idea to be suspicious of the application of non-business analogies to business. But one recent book, Judo Strategy, (HBSP,2001), by David Yoffie and Mary Kwak, provides interesting advice on how underpowered upstarts can compete against the sumo giants of their industries by practicing the business equivalent of judo. The authors provide examples of how, by practicing judo principles of movement (not inviting attack, defining the competitive space, and following through fast); balance (gripping your opponent, avoiding tit-for-tat, and pushing when pulled); and leverage (leveraging your opponent's assets, partners, and competitors), the small can outsmart the large.
Exhibit A is the story of Intuit, the financial software provider. Intuit has continued to dominate Microsoft in its niche through intensifying focus, defining the competitive space, listening to customers through creating marketing research and customer service, and developing products created by hard-to-find customer-centered software engineers.
But now Microsoft's proposed settlement of its dispute with an even bigger sumo—government—would involve giving computers equipped with its operating system to thousands of inner-city schools. Is this an example of the sumo learning judo—following through fast, pushing when pulled, and leveraging Apple Computer's (educational) partners to Microsoft's long-term competitive advantage?
In the wake of the Microsoft settlement, what does the future hold for competition in such areas as operating systems, Web services platforms, Web services, and enterprise applications? Will the Intuits of the world be able to carve out and hold onto market niches, offering hope for other judo competitors? Will other sumos, such as Sun Microsystems, "bulk up" to compete? Will Microsoft follow through with its promise of a kinder, gentler application of sumo? Or will we find ourselves in the middle of another contest between Microsoft and the biggest sumo of them all? What do you think?