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strategizing in that they cover the basics: (1) external environment, (2) internal
organizational characteristics, and (3) some fit between them that has positive
performance consequences. The fourth facet of the strategy diamond is
called vehicles. If arenas and differentiators show where you want to go, then

vehicles communicate how the strategy will get you there.
Specifically, vehicles refer to how you might pursue a new arena through
internal means, through help from a new partner or some other outside source, or
even through acquisition. In the context of vehicles, this is where you determine
whether your organization is going to grow organically, acquisitively, or through a
combination of both. Organic growth is the growth rate of a company excluding any
growth from takeovers, acquisitions, or mergers. Acquisitive growth, in contrast,
refers precisely to any growth from takeovers, acquisitions, or mergers. Augmenting
either organic or acquisitive growth is growth through partnerships with other
organizations. Sometimes such partnership-based growth is referred to as co-
opetition, because an organization cooperates with others, even some competitors, in
order to compete and grow.
Vehicles are considered part of the strategy because there are different skills
and competencies associated with different vehicles. For instance, acquisitions fuel
rapid growth, but they are challenging to negotiate and put into place. Similarly,
alliances are a great way to spread the risk and let each partner focus on what it does
best. But at the same time, to grow through alliances also means that you must be
really good at managing relationships in which you are dependent on another
organization over which you do not have direct control. Organic growth, particularly
for firms that have grown primarily through partnering or acquisition, has its own
distinct challenges, such as the fact that the organization is on its own to put together
everything it needs to fuel its growth.
Staging and Pacing
Staging and pacing constitute the the fifth and final facet of the strategy
diamond. Staging and pacing reflect the sequence and speed of strategic moves. This
powerful facet of strategizing helps you think about timing and next steps, instead of
creating a strategy that is a static, monolithic plan. As an example, the managers of
Chuy’s, a chain of Austin, Texas-based Tex-Mex restaurants, wanted to grow the
business outside of Austin, but at the same time, they knew it would be hard to
manage these restaurants that were farther away. How should they identify in which
cities to experiment with new outlets? Their creative solution was to choose cities
that were connected to Austin by Southwest Airlines. Since Southwest is inexpensive
and its point-to-point system means that cities are never much more than an hour
apart, the Austin managers could easily and regularly visit their new ventures out of
town. Remember, strategizing is about making choices, and sequencing and speed
should be key choices along with the other facets of the strategy. The staging and
pacing facet also helps to reconcile the designed and emergent portions of your
strategy.

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