It can be neither but it can’t be both!
These are operationally effective. They have a very definable, explainable business model that is scaleable and sustainable. They obsess about optimising their model, looking for greater efficiencies and ways in using it to exploit further opportunities.
Fit organisations stay very focused. They have ‘traded off’ their strategic options, choosing to do a few things brilliantly, rather than lots of things averagely. They innovate more in their processes than through their products and services, it’s the way they do business rather than what they sell.
Fit organisations include Dell, Amazon, Zara.
Those that have created aspirational brands that say something positive about the users association with them. They have a very clear understanding of their brand essence and never do anything to compromise its market perception.
Sexy organisations focus on adding innovation to their offering. They have ‘traded off’ their strategic options, choosing only to produce things that reinforce their brand – innovative, original, and distinctive. How they do business is (relatively) less important to them that what they sell.
Sexy organisations include Apple, Tesla, Virgin Atlantic, BMW.
What characterises both types is the decisions they have made about their respective positioning. They are clear about their distinctive competences and how to put them to effective use. Many businesses try to do both, which effectively means the offer becomes confused so their customers become unsettled. One of the things that characterises all the example organisations is the large number of loyal customers they have.
Go on, knock yourself out and make some strategic decisions!
If you would like a more structured and considered sort of help in how these ‘trade offs’ can be made we’d love to talk to you.