Taking examples primarily from the high-technology business world of the past 7 years, Yoffie and Kwak use the sports of Judo and Sumo as metaphors to analyze small, new companies competing against large, entrenched companies. A brief introduction to the sport of Judo is followed by an overview of the Principles of Judo Strategy in business -- Movement, Balance, and Grip - with short examples of companies as varied as Amazon.com, Capital One, Charles Schwab, Dell, eBay, Frontier Airlines, Inktomi, Intuit, Juniper Networks, JVC, Netscape, People Express, Priceline.com, and Transmeta using these strategies (mostly) successfully. CNET Networks, Palm Computing, and Real Networks each get a chapter of their own discussing their use of Judo Strategy in detail.
Of course the upstart company does not always win, so the authors introduce the sport of Sumo and then describe how to apply Sumo Strategy to deal with a Judo strategist, using examples of behavior by AOL, Cisco, Coca Cola, Du Pont, Intel, Microsoft, and Texas Instruments.
I enjoyed the judo and sumo metaphors and especially all the stories about companies that had used these strategies successfully. The only suggestion for improvement I might offer the authors is to include more examples of companies (like Netscape) who violated these strategies and paid the price.
Judo Strategy winds down with a list of five rules for the Judo Strategist, which I will summarize as: Focus, Execute, Be Nimble, Leverage Creatively, and Cut Your Losses Quickly. I was particularly impressed by the passion, energy, intellect and dogged determination required of a small company leader to compete successfully with a large company. The commitment over a long period of years by a single leader sets a very important tone for a company, and events like George Sheehan leaving WebVan [I wrote this review before WebVan folded!] or Peter Neupert kicking himself upstairs to Chairman at Drugstore.com should be seen as critical warning signs about the long-term viability of those companies.