Why do some companies succeed in defeating stronger rivals, while others fail? This is a question that all ambitious businesses eventually face. Whether you’re a start-up taking on industry giants or a giant moving into markets dominated by powerful incumbents, the basic problem remains the same: How do you compete with opponents who have size, strength, and history on their side?

The answer lies in a simple but powerful lesson: Successful challengers use what we call judo strategy to prevent opponents from bringing their full strength into play. Judo strategists avoid head-to-head struggles and other trials of strength, which they are likely to lose. Instead, by exploiting their advantages in speed, agility, and creative thinking, they can make it difficult for even stronger rivals to compete.

Judo Strategy illustrates this lesson with examples from a broad spectrum of companies, ranging from high-tech start-ups like eBay and Juniper Networks to industry leaders like Wal-Mart and Charles Schwab.