The Difference between a Strategic Theme and a Real Bet

Two companies. Same customer. Same market. Roughly the same product quality. One is growing margin. The other is defending price. The difference isn't technology, brand heritage, or R&D budget. It's what one of them chose to focus on — and how precisely they defined it. While one kept optimising the product, the other got very specific about the problem they were solving and who they were solving it for. That shift didn't happen by accident. It happened because someone replaced a broad strategic direction with a sharp one.

We've seen this in B2B industrial markets and consumer categories alike. Most leadership teams we work with aren't unfocused in the obvious sense. They have priorities. They have strategic themes. They have a clear sense of where they want to grow. The problem is that themes aren't focus. "Digital," "innovation," "customer experience," "AI" — these are directions without edges. They don't help you choose what to build next, which customers to pursue first, or where to concentrate your best people. And when focus is vague, execution stays fragmented no matter how aligned the leadership team feels in the room.

Themes aren't focus. A direction without edges doesn't help you choose — it just makes everyone feel like they're moving.

What Makes It a Real Bet

A real bet isn't a goal or a theme. It's the specific intersection of three conditions: there is a real and growing market opportunity, it connects to something customers genuinely value, and you have a credible right to win there. That intersection is what we call a Strategic Focus Area. All three conditions have to be true. If the market opportunity is real but customers don't value what you'd offer, that's a capability bet with no pull. If customers want it and you can deliver it but the market isn't moving that way, you're solving for yesterday. If both are true but you have no credible position to win from, you'll spend heavily and arrive second.

When all three align, you have something worth building around. That's the test — not whether the opportunity is interesting, but whether the intersection is real.

The distinction matters in practice. A well-defined Strategic Focus Area is specific enough to drive decisions about what not to do. Consider the difference between "sustainability solutions for industrial customers" and "carbon reduction services for mid-size manufacturers facing EU compliance deadlines." The first is a theme. The second tells you exactly which customer, which problem, and which market signal you're responding to. One generates discussion. The other generates a roadmap.

Finding Yours

The process starts outside, not inside. Most companies do the opposite — they assess capabilities first, then look for markets where those capabilities fit. It feels logical, but it anchors strategy in what you already have rather than where value is actually moving.

Start with the market. Where are customers — whether businesses or consumers — changing what they value or how they define success? Where are competitors absent or undifferentiated? Where is demand shifting in a direction that isn't yet well served? These questions apply whether you're selling to a procurement team or a person making a decision on a phone.

Then layer on what customers are actually trying to solve. Not what they say they want — what they're genuinely frustrated by, what they'd pay a meaningful premium to fix reliably, what they keep working around because no one has addressed it properly. Your frontline teams already know the answers. Field service, sales, customer support — they hear it daily. The challenge is getting that intelligence into the room where strategy is made, rather than letting it sit in individual heads.

Only then test for fit. Do you have the assets, relationships, or market position to deliver a meaningful outcome here and defend it over time? If the answer is yes across all three, that's where you go deep.

What Happens When It Works

To make this concrete, consider how the pattern plays out. A filtration business with strong products and decades of customer relationships — margins declining, commoditisation accelerating, product catalogue expanding as leadership chases adjacent applications. When they apply the three-question filter honestly, one Strategic Focus Area emerges: predictive maintenance enablement for critical filtration systems in energy and chemical plants.

That single line can coordinate an entire organisation. Product focuses on sensor-embedded systems for real-time condition monitoring. Technology builds predictive analytics to forecast failures before they occur. Marketing repositions the brand around uptime and operational continuity rather than product specifications. Sales has a fundamentally different conversation with buyers. The customer stops seeing a component supplier and starts seeing a partner in reliability.

The same dynamic plays out in consumer markets. A product company in a crowded category stops competing on features and defines its focus around a specific unmet need — say, simplicity for buyers who want quality without complexity. Product, packaging, digital experience, and retail presence all pull in the same direction. The brand starts to mean something specific to a specific customer. That's not positioning work. That's what a sharp focus area produces.

Teams stop asking "what should we work on?" and start asking "how do we win here?" That's the shift a real focus area creates.

 When teams have shared language around a clear customer outcome, decisions get faster and resource allocation gets cleaner. The focus area becomes a filter for ideas, investments, and partnerships — not a label on a slide that gets revisited once a year. The organisation stops defending broad intentions and starts coordinating around a specific bet.

The Question Worth Asking

Most product companies already have focus of a kind. The more useful question is whether it's sharp enough to drive real decisions. Can your leadership team articulate, in a single specific sentence, where your market opportunity and customer value intersect — and why you're credibly placed to win there? Can your teams use that sentence to decide what to say no to?

If the answer is uncertain, the work isn't to generate more options. It's to get more precise about the ones you already have. Start with the three questions. Be honest about where all three answers are genuinely yes. Then build there with the depth and coordination that vague focus never quite allows.