The strategy palette has three dichotomous variables – predictability, malleability, and harshness. Predictability is defined as the extent to which the organization can predict the key strategy variables in its environment which impact the focal strategic issues for the organization. It also relates to how far into the future the organization can make such predictions. Malleability is defined as the extent to which the organization and its competitors could influence these key strategy variables. Harshness refers to the ability to survive a harsh environment.

The renewal strategy approach seeks to ensure the company survives the harsh environment it has found itself in because of a misfit between its strategy and environment, or because it is being subjected to a major external or internal disturbance. Regardless of the factors which have caused the hardship, companies need to, in the short term, first ensure their viability by pursuing a defensive strategy which reduces costs, gets rid of unattractive businesses or products, conserves capital, and saves and frees up resources. Afterwards, they should pursue one of the four strategies mentioned above for the long-term. Therefore, this strategy approach is only temporary in nature.

The classical strategy approach is most suitable for stable environments which are predictable, where the rules of competition or conduct are well-established, making them non-malleable. These predictable and non-malleable environments are continuations of the past. Hence, the bases for achieving sustainable competitive advantage are known and can be achieved through competitive positioning using differentiation or cost leadership through scale.

The Strategy Palette framework was first published in Harvard Business Review (HBR) in by the lead author, Martin Reeves, and two colleagues, Claire Love and Philipp Tillmanns []. It had two dimensions: predictability and malleability; as well as four strategy approaches. Subsequently in , the framework was updated, and a third dimension was added called harshness, resulting in five strategy approaches. This updated version was published in the book “Your Strategy Needs a Strategy: How to Choose and Execute the Right Approach”, which was written by the lead author, Martin Reeves, and two new co-authors, Knut Haanaes and Janmejaya Sinha [].

The shaping strategy approach emphasizes collaboration through the orchestration of activities with other players in the ecosystem. Shapers engage, orchestrate, and evolve. Shapers first engage other players in the ecosystem in the creation of a shared vision for the industry. Subsequently, they orchestrate the collaborative activities through a platform. Lastly, they evolve the platform by scaling it up. BCG research has identified five strategy tools which can be used with the shaping approach. These strategy tools include S-curve, ecosystem strategy, co-opetition, open innovation, and shared value framework.