How Ola Cabs Used Elements of “Judo Strategy” to Outmanoeuvre its Competitors in India

In the extremely intense and competitive environment of the start-up industry, it is very difficult to take on the market leaders and carve out space for themselves. Nevertheless, it is possible for such small and relatively quick companies to change the circumstances in their favor. One such strategy is Judo Strategy which has borrowed elements from the Japanese fighting art. With this approach, smaller, often first-time startups that achieve market entry can destroy the larger incumbents who are already in the market by employing all three components of the Judo Strategy – agility, balance and leverage.

Ola Cabs stands out as a great example of Judo Strategy implementation. Even as a start-up, Ola kept growing rapidly and became one of the leading players in the ride-sharing industry in India. So, what strategies did Ola embrace in order to thrive in an industry that was dominated by a giant such as Uber? Let’s break it down.

Agility: Moving Faster than Large Competitors

One of the key concepts of Judo Strategy is agility which means, the use of speed as well as flexibility to mitigate the potential benefits of a large opponent. Being a relatively young startup, Ola had the luxury to have a good understanding of the Indian consumers and therefore moved quickly to establish a footprint in the market.

When Uber was still making stumbles in India and trying to improvise its global model, Ola was already venturing out to newer provinces which were not so well served by Uber!

Balance: Surviving Competitive Attacks

The second principle of the Judo Strategy is balance, meaning embracing the competitor's moves while holding your own ground. Ola achieved such balance by refraining from applying Uber's global model “as is” and focusing on localization instead. Specifically, Ola launched appellate auto rickshaws booking facility through the American mobile app. This particular action was designed for the Indian context where autos are very prevalent means of transport, more in smaller towns.

Leveraging Uber’s Strengths and Weaknesses

Turning a competitor’s advantages into disadvantages, leveraging first movers’ advantage or Creating Synergic Clusters and Regional Networks- Ola Cabs has done it all! There is no denying the fact that Uber had a lot of money in the bank and technology to boast, but it also had its consequences because the company had to be slow in addressing the different aspects.

For example, Ola launched Ola Money, a wallet system which was suited to the Indian consumers. Ola provided a value proposition by facilitating simple payments to drivers and passengers in a very cash dependent market.

In conclusion, Ola Cabs triumph in the tough ride-sharing business shows how well Judo Strategy works. By using Agility, balance, and leverage, Ola beat bigger rivals like Uber. Ola grew fast, focused on local needs, and used tech wisely to turn Uber's strong points and weak spots to its advantage. This example proves how crucial it is to know market trends and try new ideas for new companies to succeed in tough markets.