Why You Can’t Simply Copy Someone Else’s Business Strategy

Replicating another company’s business strategy may seem like a shortcut to success, but it often leads to failure.

Replicating another company’s strategy may seem like a shortcut to success, but it’s rarely effective. A strategy isn’t just tactics, it’s a cohesive system of activities that work together. Changing even a few parts can lead to failure.

As a business coach with years of experience advising high-growth companies, I’ve seen CEOs and founders tempted to imitate others’ success, only to become frustrated when it doesn’t work. Strategies are context-dependent and tailored to specific market dynamics, cultures, and customer needs.

Here’s why copying another company’s strategy rarely works, along with some real-world examples.

1. The magic is in the interconnections.

Successful business strategies are not just a set of random activities. Instead, they involve a network of interdependent choices that, when combined, create a competitive advantage. When you cherry-pick aspects of a strategy without understanding how they interlock, you miss the bigger picture.

Take Southwest Airlines and its imitator, Spirit Airlines. Both aim to be low-cost carriers, but their approaches are different. Southwest focuses on fast turnarounds, point-to-point routes, and a strong company culture. It uses only the Boeing 737 to streamline operations. Spirit, however, offers ultra-low fares by charging for extras, creating a different customer experience. While they share some low-cost airline tactics, their core strategies diverge. Spirit couldn’t replicate Southwest’s culture and operations, nor did it intend to.

2. Market context matters.

Every business operates within a specific market context. Strategies are designed with this context in mind, including customer preferences, competitive dynamics, and regulatory constraints. Copying a strategy without understanding the market environment it was designed for can lead to poor results.

Consider Airbnb and VRBO. Both operate in vacation rentals but target different travelers. Airbnb offers unique, localized experiences—letting guests “live like a local” in various properties, including shared spaces like apartments or single rooms. VRBO primarily serves families and groups seeking entire homes or condos. Though similar in business model, their branding, customer engagement, and user experiences differ due to distinct customer needs. If Airbnb adopted VRBO’s entire-home-only focus, they would alienate a key segment of their customers.

3. Culture is critical.

One of the most overlooked factors in any business strategy is company culture. The best strategies are not just about what you do, but how you do it. Company culture plays a huge role in how effectively a strategy can be executed.

For example, Vanguard and Charles Schwab both operate in financial services, offering similar low-cost investing options. However, their strategies are rooted in different cultures. Vanguard focuses on a “client-first” approach with a mutual ownership structure, returning profits to investors through lower fees. Schwab emphasizes a customer-friendly approach, with a broader mix of digital services and innovation driven by entrepreneurial spirit and agility. If one copied the other’s strategy without aligning cultural values, it would likely fail.

4. Differentiation is key.

No two businesses are exactly alike, even if they operate in the same industry. Customer bases differ, as do operational capabilities, leadership teams, and brand identities. A strategy that works perfectly for one company may be entirely wrong for another.

Consider Apple and Microsoft as examples. Both are global tech giants, yet their strategies differ greatly. Apple focuses on premium products with a seamless ecosystem and user experience, emphasizing hardware and software integration, sleek design, and strong emotional ties with customers. Microsoft’s strength lies in software, especially with Windows, Office, and the cloud-based Azure, capturing enterprise markets with adaptable solutions.

If Apple adopted Microsoft’s enterprise approach, they could lose their identity built on exclusivity and design. Similarly, if Microsoft mimicked Apple’s product focus without a similar design ethos, it couldn’t achieve the same customer loyalty. Each company’s strategy aligns with its strengths. Copying without understanding these distinctions leads to failure.

At its core, a business strategy is unique to the company that designs it. While you can learn from others, successful strategies must reflect your company’s culture, market position, and operational strengths. Copying someone else’s strategy without considering these factors is like wearing a suit tailored for someone else. It might fit in some places but will feel uncomfortable and restrict your movement in others.

The key to success is crafting a strategy that’s tailored to your unique strengths, opportunities, and customer needs, ensuring you stand out in your market, rather than simply following someone else’s footsteps.