Strategic Fit

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What is Strategic Fit? Meaning.

Strategic Fit is the extent to which an organization is able to match its (internal) resources and capabilities to its external environment via its strategy:

• CAPABILITIES could be Distinctive Capabilities or Dynamic Capabilities.
• RESOURCES. See Resource-based View on the Firm.

The term strategic fit is also used to express the degree to which the corporate mission and strategies of an organization match its internal structure and its external environment. See the 7-S Framework which is similar to this idea.

The term is also used in a merger and acquisition-context to indicate how well both parties fit together.

The term should not be confused with strategic stretch: the extent to which an organization is able to use, deploy and 'stretch' the resources it possesses to achieve its strategic goals and Strategic Intent.

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Compare with: Ashridge Mission Model  |  7-S Framework  |  Due Diligence  |  Competitive Environment  |  Strategic Analysis  |  Strategic Infliction Point  |  Dynamic Capabilities

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