Genotype vs. Phenotype
Genotype is the underlying organizational DNA - core principles, processes, and capabilities that generate success across contexts.
When Starbucks expanded to Australia with 90 stores and failed spectacularly, closing 61 locations at a loss of $143 million, they learned this lesson brutally. They tried to copy their U.S. phenotype without realizing Australian coffee culture had different DNA requirements.
This distinction between genotype (the information) and phenotype (the expression) is fundamental to understanding reproduction. It's also the most misunderstood concept in business strategy.
Your success in one market (phenotype) reflects both your organizational DNA and the specific environmental conditions. When you expand, you must figure out which elements of your success are genotype (will transfer to new contexts) and which are phenotype (won't). Most companies get this wrong.
Business Application of Genotype vs. Phenotype
Genotype is the underlying organizational DNA - core principles, processes, and capabilities that generate success across contexts. Phenotype is the visible expression of that DNA in a specific environment. Most expansion failures result from copying phenotype (surface-level tactics) instead of genotype (underlying principles). The Phenotype Fallacy is trying to replicate what you see without understanding what causes it.