Strategy & Games
Capability Extension Principle
When transforming a business, expand incrementally into adjacent domains related to existing capabilities rather than leaping into unrelated industries. Each expansion must maintain a connection to core competencies—like how copper windings in motor harnesses and robots' heavy use of motors build layered capabilities rather than capability gaps. Growth compounds existing strengths instead of fracturing them.
Read the daily articles behind this idea on the Chinese edition.
Related principles
- → LinksCapability Integration vs. Point Optimization
- → LinksJobs to Be Done
- → LinksTalent Replication and Market Reconvergence
- → LinksPlatformized Drug Discovery: Asset Ownership to Capability Integration
- ↺ CountersComfort Zone Trap
- → LinksCapability Migration Law
- → LinksTool Fragmentation Integration Paradox
- → LinksCapability Acquisition
- → LinksVertical Integration Capital Bet
- → LinksStructural Gap in Capability Matrix
- ↗ ExtendsConstraint-Driven Innovation