Sun Tzu said, "There are battles that must not be fought." If you have a weakness that's hard/impossible to overcome, you must devise a strategy where that weakness does not come into play. You had a great example: If you are unable to win the battle under the hoop, shoot from the outside. Knowing the strengths and weaknesses of yourself and the opponent, one should be able to come up with a workable winning strategy. Luckily, many do not have the awareness or mindset to be able to implement this concept.
Another of my favorite Sun Tzu's sayings is to know the ground (geographic, legal, social) you're fighting on, as this will have a major effect on strategy and tactics. Although written in regards to armies, his wisdom is applicable to single combat as well, as Musashi related in his book. Strategic concepts are universal and can be applied to many of life's endeavors. IMO, many MA schools do not spend enough time on this.