The way a business is built 🧱 (its structure) needs to match the way it tries to win in the market (its strategy). If those two don’t fit, the business struggles.
Think of it like shoes: basketball shoes work great on the court, but they’d be terrible for swimming. Same with business—your design has to fit your game plan.
Four Types of Businesses (Miles & Snow)
- Defenders → Stick to what they’re good at.
- Prospectors → Always trying new things.
- Analyzers → A mix of both.
- Reactors → No clear plan, just reacting to problems.
How Businesses Compete (Porter’s View)
- Low-Cost Leadership: Be the cheapest.
- Differentiation: Be unique.
- Focus/Niche: Serve one group really well.
Why This Matters for You
If you’re building a business:
- Match your design to your goal.
- Don’t just copy someone else. Their structure fits their plan.
- Always check: does my setup (people, tools, processes) actually fit my game plan?
Quick Recipe for Strategy + Structure Fit 🍴
- Pick your goal: cheapest, most unique, or focused niche.
- Check your setup: does your team structure help or block that goal?
- Adjust: cut waste for low-cost, add freedom for creativity, or sharpen focus for niche.
- Review often: the market changes—your structure should too.
👉 Takeaway for Entrepreneurs: Winning in business isn’t just about having a cool idea. It’s about making sure the way you run your business matches the way you want to win.
Strategy without tactics = failure waiting to happen.