What is strategic fit? And why is it sexier than a unicorn?

by Francisco Santolo

A strategy is not a list of correct choices.

What is strategic fit? And why is it sexier than a unicorn?

A strategy is not a list of correct choices. It is a system where each activity reinforces the others.

However, in many organizations, the strategy is not defined as a coherent system, nor is it communicated precisely, much less is it given a structure that allows it to be sustained over time. What remains in its place is a collection of unconnected activities, defined by functional areas and associated with indicators (KPIs), more oriented to control than to the true strategy: the strategic plan.

But this fragmented way of thinking loses sight of the most essential thing: a powerful strategy is not in individual decisions, but in their fit, and their reinforcement.

What is strategic fit?

Strategic fit is the internal coherence between the activities of an organization. It is not enough for each activity to work well separately: they must be integrated into a system designed to support strategic positioning.

Michael Porter identifies three forms of fit that contribute to a sustainable advantage:

1. Consistency between each activity and the overall strategy: when all activities point in the same direction, clarity and strategic discipline are reinforced.

2. Mutual reinforcement between activities: when one activity increases the impact of another, and vice versa.

3. Effort optimization: when coordination between activities reduces redundancies or waste and improves system efficiency.

What makes a strategy powerful is not an isolated brilliant idea, but a well-designed system of activities that interconnect to amplify its collective effect.

When there is a fit, a synergy is generated that is difficult for the competition to imitate.

How are these activities configured?

Strategic decisions are the starting point: the strategy is reflected in the business model – what value is offered, to whom, how it is captured and monetized – and in the operating model – how that value is delivered consistently.

From these choices, activities arise: what is done, how it is done, in what sequence, with what resources, in what channels, and with what standards.

A powerful strategy is not just about making good decisions, but about ensuring that those decisions shape activities that work as a system: coherent, coordinated and strategically fit.

Attributes, perception and value

From the customer's perspective, what is perceived are not internal activities or strategic decisions, but rather their visible effects: the attributes of the product or service, and the brand that represents them.

In Blue Ocean Strategy, these attributes are the value drivers that allow us to differentiate ourselves and find Blue Oceans—such as simplicity, accessibility, speed, design, exclusivity or sustainability, but also trust, closeness, inspiration or sense of belonging.

But these attributes do not exist on their own: they are the external expression of internal decisions and activities. Deciding to prioritize delivery speed, for example, requires designing logistics processes, choosing technology, configuring alliances, forming teams... everything must be coordinated so that the attribute is manifested consistently.

Therefore, strategic fit connects the internal with the external: activities must be integrated to produce the attributes that support the value proposition.

Example: IKEA and its integrated system

IKEA does not lead by a single advantage. Its strength lies in how its activities fit together to form a system that is difficult to copy:

* Furniture designed for self-assembly? reduce logistics costs.

* Flat packaging? facilitates transportation and storage.

* Large peripheral stores? They show the entire catalog and reduce real estate costs.

* Guided purchase flow? optimize the experience and promote additional purchases.

Each of these activities was chosen based on consistent strategic decisions and is designed to reinforce the others. What is powerful is not in the isolated activity, but in the coherence and complementarity of the complete system.

This system generates functional attributes such as accessibility, convenience, visible variety, and low prices, but also emotional and relational attributes: autonomy (the customer builds their own home), empowerment (they choose and transport themselves), their own style at low cost, and a feeling of efficiency and ingenuity that becomes part of the brand's identity.

Thus, IKEA not only designs an efficient model: it designs an experience perceived as consistent, differentiated and emotionally meaningful. And that is a direct result of the strategic fit.

How to build strategic fit in your business

1. Part of the purpose and business model Every strategy begins with clarity: why are you doing it? What progress do you enable in your clients and key actors? What really makes your solution different? What attributes or drivers support that value proposition? These answers guide the strategic decisions that will define your business model: what value you offer, to whom, how you capture it, and how you monetize it.

2. Identify the activities that translate your strategy into action Ask yourself: What activities must be executed so that this positioning and those attributes are manifested in a clear and sustained way? How do they interact with each other to generate visible and consistent value?

3. Design an aligned operating model. Who will carry out these activities? What people, suppliers, allies, technology or processes are missing? The operating model must faithfully reflect what the strategy proposes.

4. Eliminate internal contradictions Check the coherence of the system: do you promise simplicity, but you operate with complex processes? Do you offer exclusivity, but do you arrive through mass channels? Each dissonance weakens your strategic fit.

5. Evaluate the strategy as a system, not as parts. Do not analyze activities in isolation. See how each decision impacts the others. Question: Does this reinforce or interfere with the rest of the system?

6. Adjust judiciously, without losing cohesion The strategic fit is a dynamic choreography. As the environment evolves, the system must adapt, but without breaking the coherence that makes it unique and difficult to imitate.

Tools like the Scalabl® Virtuoso Business Model Canvas (which integrates business and operational model) + Value Map + Value Stick + Process Map can be very powerful.

Strategy is dynamic direction based on integrated decisions

A powerful strategy is not based on having the best idea, the best product or the best campaign. It is based on designing decisions that configure coherent and interdependent activities, capable of being reinforced, coordinated and sustaining a clear and valuable positioning over time.

That is the strategic fit.

And when you build it with clarity, consistency and purpose, you don't just create a model that works: you create a living system that is difficult to imitate, a strategic choreography that adapts without losing meaning.

Because a well-designed strategy is that: dynamic direction based on integrated decisions. It is connection, coherence and purpose.

And when everything fits, you don't just stand out: you become unique.


What to read next from Francisco Santolo