Substitutes and Strategy: Five Types and Distinct Strategic Imperatives

Overview
The article explores the concept of substitutes in strategic thinking, outlining five distinct types of substitutes and the strategic imperatives each type creates for organizations. It draws on a recent client discussion to illustrate how recognizing substitutes can reshape competitive positioning and innovation choices.

Key Takeaways

• There are five categories of substitutes that can affect a company's strategic landscape.
• Each substitute type generates a specific strategic imperative for decision makers.
• Understanding substitutes helps leaders identify hidden threats and new opportunities.
• Applying the framework can improve product development and market entry strategies.
• The approach aligns with the "Playing to Win" strategic model.

Who Would Benefit

• Technical leaders and engineering managers shaping product roadmaps.
• Business strategists and senior executives responsible for competitive analysis.
• Innovation teams seeking systematic ways to assess alternative solutions.
• Consultants and coaches working on strategic planning.

Frameworks and Methodologies

• Substitute Types Framework
• Playing to Win strategic model