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Mastering Balance: How to Meet and Beat a Stronger Opponent
Any company can learn to compete more effectively with stronger rivals by mastering the concept of balance in the face of attack. Balance is a judo strategy principle that emphasizes the importance of retaining the initiative and shaping the competition in ways that make it easier to win. Rather than get thrown on the defensive, successful judo strategists learn to engage with powerful opponents by mastering three techniques: grip your opponent, avoid tit-for-tat, and push when pulled. These techniques are illustrated with a variety of examples drawn from both new- and old-economy companies. -
Microsoft in 2002
Examines Microsoft's strategy and competitive position as it prepares to launch Windows XP. The discussion explores how Microsoft builds and sustains its competitive edge. -
Playing by the Rules: How Intel Avoids Antitrust Litigation
Microsoft and Intel are both obvious targets for antitrust litigation; both wield considerable control in their respective segments of the computer industry. But while Microsoft has been mired in court for years now--its name and business practices dragged through the mud, and its very future as a single company thrown into doubt--Intel has avoided a prolonged, high-profile antitrust case. Intel's success is not a matter of luck. The company's antitrust compliance program, refined over many years, has been an integral element in the chip maker's business strategy. In this article, the authors suggest that Intel's approach to compliance provides a valuable model for any enterprise that may come under regulators' scrutiny. They describe how Intel created extremely conservative antitrust compliance standards and then instituted a series of unique training events that had active support from then-CEO Andy Grove and others in senior management. Intel recognizes that no matter how cautious it is, it will always face extraordinary scrutiny as a market leader. But "since antitrust is embedded in everything we do," Grove says, "we can control our destiny." -
Gucci Group N.V. (B)
Supplements the (A) case. -
Gucci Group N.V. (A)
Examines the turnaround of Gucci and its transition from a single brand to a multi-brand company. A rewritten version of an earlier case. -
Gucci Group N.V. (A), Spreadsheet Supplement
Spreadsheet supplement for case 701-037. -
Apple Computer--1999
In 1980, Apple was the leader of the PC industry, but by 1999, it had suffered heavy losses at the hands of the Wintel camp. This case examines Apple's efforts to create sustainable competitive advantage as the PC industry evolves. After discussing Apple's history and past strategic moves (1977-1999), the case poses the question: Can Steve Jobs make Apple "insanely great" again? -
Judo Strategy: The Competitive Dynamics of Internet Time
Competition on the Internet is creating fierce battles between industry giants and small-scale start-ups. Smart start-ups can avoid those conflicts by moving quickly to uncontested ground and, when that's no longer possible, turning dominant players' strengths against them. Authors David Yoffie from HBS and Michael Cusumano from MIT call this competitive approach judo strategy. They use the Netscape-Microsoft battles to illustrate the three main principles of judo strategy: rapid movement, flexibility, and leverage. In the early part of the browser wars, for instance, Netscape applied the principle of rapid movement by being the first company to offer a free stand-alone browser. This allowed Netscape to build market share fast and to set the market standard. Flexibility became a critical factor later in the browser wars. In December 1995, when Microsoft announced that it would "embrace and extend" competitors' Internet successes, Netscape failed to give way in the face of superior strength. Instead it squared off against Microsoft and even turned down numerous opportunities to craft deep partnerships with other companies. The result was that Netscape lost deal after deal when competing with Microsoft for common distribution channels. Netscape applied the principle of leverage by using Microsoft's strengths against it. Taking advantage of Microsoft's determination to convert the world to Windows or Windows NT, Netscape made its software compatible with existing UNIX systems. While it is true that these principles can't replace basic execution, say the authors, without speed, flexibility, and leverage, very few companies can compete successfully on Internet time. -
Microsoft--1995 (Abridged)
Focuses on how Microsoft built one of the world's greatest franchises and poses questions about what, if anything, can stop the company. Teaching purpose: To teach building competitive advantage, the advantages of bundling, and the sustainability of competitive advantages over time. -
Browser Wars--1994-98
Analyzes the competition between Netscape and Microsoft in the market for Web browsers and related products. Despite its first mover advantage, Netscape sees its market share fall once Microsoft becomes "hard-core" about the Internet. By the spring of 1998, the future of both companies is on the line. -
Apple Computer--1998
Updates Apple Computer--1992. -
Apple Computer--1997
Updates Apple Computer--1992. -
Wal-Mart--1997
Supplements Wal-Mart Stores, Inc. -
Apple Computer--1996
Updates Apple Computer--1992. -
Wal-Mart in East Asia
Discusses Wal-Mart's entry strategy in East Asia, specifically Singapore, Japan, Hong Kong, and China. -
Internationalizing the Cola Wars (A): The Battle for China and Asian Markets
Analyzes the strategies pursued by Coke and Pepsi in the emerging Asian soft drink market. Analyzes the tactical battle of the cola giants in China specifically. -
Internationalizing the Cola Wars (B): The Battle for India
Analyzes the tactical battle of the cola giants in India. -
Apple Computer--1995 (A)
Updates Apple Computer--1992. Summarizes the key strategic actions from 1992 to 1995 regarding PCs, the PowerMac, multimedia, OS licensing, and alliances with IBM. -
Apple Computer--1995 (B): Competitor Updates
Updates Apple Computer--1992. Summarizes the key strategic actions of Compaq, Intel, and Microsoft. -
Swissair's Alliances (A)
Swissair established two alliance networks in 1989 in order to improve its competitiveness. In order to evaluate the benefits of the alliances, Swissair's history, products, and cost structure are described, as is the international airline industry and the major players. The challenge for Swissair is how to gain further economies of scale in an increasingly competitive global marketplace. A rewritten version of an earlier case.