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Adapted from Hambrick, D. C., & Fredrickson, J. W. (2001). Are you sure you
have a strategy? Academy of Management Executive, 19 (4), 51–62.
Because of their critique and analysis, they concluded that if an organization
must have a strategy, then the strategy must necessarily have parts. The figure
summarizes the parts of their diamond model, its facets, and some examples of the
different ways that you can think about each facet. The diamond model does not
presuppose that any particular theory should dictate the contents of each facet.
Instead, a strategy consists of an integrated set of choices, but it isn’t a catchall for
every important choice a manager faces. In this section, we will tell you a bit about
each facet, addressing first the traditional strategy facets of arenas, differentiators,
and economic logic; then we will discuss vehicles and finally the staging and
pacing facet.
Arenas, Differentiators, and Economic Logic
We refer to the first three facets of the strategy diamond—arenas,
differentiators, and economic logic—as traditional in the sense that they address three
longstanding hallmarks of strategizing. Specifically, strategy matches up market
needs and opportunities (located in arenas) with unique features of the firm (shown
by its differentiators) to yield positive performance (economic logic). While
performance is typically viewed in financial terms, it can have social or
environmental components as well.

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