How Strategy Shapes Structure
How Strategy Shapes Structure by W. Chan Kim and Renée Mauborgne * Print * Email * Purchase Article
Seven Strategy Questions: A Simple Approach for Better Execution by Robert Simons
Buy it now »
HBR's 10 Must Reads on Strategy (with featured article "What Is Strategy?" by Michael E. Porter) by Mark Johnson, Karla Martin, Elizabeth Powers, et al.
Buy it now »
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant by W. Kim, Renee Mauborgne
Buy it now » * Email * Share * Print
The Idea in Brief
• There are two types of strategy: structuralist strategies that assume that the operating environment is given and reconstructionist strategies that seek to shape the environment.
• In choosing which of the two is most appropriate for your organization, you need to consider environmental attractiveness, the capabilities and resources you can call on, and whether your organization has a strategic orientation for competing or for innovating. Diversified companies should be comfortable using both approaches.
• Whichever type of strategy is chosen, success will depend on creating an aligned set of strategy propositions targeted at three different sets of stakeholders: buyers, shareholders, and the people working for or with the organization.
• Where the approaches diverge is in the nature of their proper alignment. Structuralist strategies require that all propositions focus on delivering either low cost or differentiation. Reconstructionist strategy propositions aim to deliver both, as exemplified by the cases of the city-state of Dubai, Apple’s iTunes, and the charity Comic Relief.
When executives develop corporate strategy, they nearly always begin by analyzing the industry or environmental conditions in which they