Strategy for Start-ups — Redux. Sameness & Difference | by Roger Martin | Sep, 2024 | Medium

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Original article

Key Takeaway

For Entrepreneurs: The core principles of strategy, such as defining an integrated set of choices to compel desired customer action, remain the same for start-ups as for established companies. However, start-ups must focus on identifying and addressing customer gaps and building mental and physical availability (M/PA) to succeed.
For Investors: Understanding that start-ups need to balance sameness with difference in their strategic approach is crucial. Investors should look for start-ups that recognize the importance of core strategic principles while also addressing the unique challenges of building M/PA and identifying customer gaps.

Summary

Roger Martin's "Strategy for Start-ups — Redux" emphasizes the need to balance sameness and difference in strategic thinking for start-ups. He argues that while the fundamental principles of strategy remain the same for all companies, start-ups face unique challenges, particularly in defining problems and building mental and physical availability (M/PA). Martin stresses the importance of focusing on customer gaps and avoiding the trap of starting with capabilities rather than customer needs.

Insights

Sameness in Strategy: The definition of strategy, the nature of competitive advantage, customer needs, and competition are the same for start-ups as for established companies.
Difference in Strategy: Start-ups must start with a customer gap rather than outcomes they have produced, as they have no prior choices or outcomes. Building M/PA is a critical and unique challenge for start-ups.
Mental and Physical Availability (M/PA): Start-ups must invest in building and maintaining M/PA to become economically viable. Obscurity is a major adversary for start-ups.
Avoiding the Technology Trap: Start-ups should focus on customer gaps rather than starting with a technology or capability and trying to find a use for it.

Implications

Strategic Thinking: Entrepreneurs and strategists must overcome the instinct to declare things as purely the same or different and instead seek a balanced view.
Customer-Centric Approach: Start-ups should prioritize understanding and addressing customer gaps over leveraging existing capabilities.
Investment in M/PA: Start-ups need to allocate significant resources to building and maintaining M/PA to achieve economic viability.