Judo business strategy is a type of corporate strategy, characterized by its distinctive ability to use a small company's disadvantages as catalysts to strengthen it in the market and seize the lead in sectors dominated by larger, better-resourced companies. The term was coined from the martial art of judo, which uses a practitioner’s momentum and inertia against them to gain a strategic advantage.

A judo business strategy leverages speed and agility to remain agile and fast to respond to changes, and to take opportunities swiftly when they arise. This allows smaller companies who employ such a business strategy to co-opt the market and leverage their small size as a strength rather than a weakness. This type of strategy allows for quick efficient responses to even major market shifts, such as pandemics, natural disasters, and changes to consumer spending habits.

Ultimately, a judo business strategy capitalizes on the small company's ability to outmaneuver larger competitors and vertically integrate, if necessary. This allows the company to both rapidly produce and distributes its products, reducing costs and fostering new and innovative products. A judo business strategy might also include the leveraging of other strategic partnerships, such as joint ventures, positive reputation and brand awareness in an industry, organic growth options such as through alliances or partners, and other methods in order to capitalize on the small company’s size and agility.

For example, a small company may offer new products to market that fill a gap or solve a problem in an industry. This new product may have been created in response to a need that large companies failed to recognize or address. A judo business strategy may be the best way to make use of the company’s limited resources, while also creating competitive positioning in the market.

In addition, judo business strategy can also be used to tap into popular culture, trends, and movements. For example, if a company is able to quickly recognize and capitalize on an up-and-coming movement or social trend, this could be a powerful way to elevate their brand and grow their customer base.

The judo business strategy is a powerful tool that can be used by small companies to outmaneuver larger companies and gain an advantage in the market. This strategy can be used to respond quickly to market changes and trends, create new products, and make use of the company’s size and agility. While a judo business strategy is not without its risks, it can be a powerful tool when employed properly.