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1. Why has Valve been so successful?

Valve, which was established in 1996 by Gabe a former Microsoft worker had a
differentiated structure from its competitors. The mission of Valve can be summed up
with a sentence told by Gabe: “Repeatability is the enemy of what Valve does”.

The hiring method was different from its competitors. The key point of Valve’s hiring
method is called “T-shaped” workers. These individuals possess deep expertise in a
specific field and a broad skill set across various domains. This strategy ensures a flexible
and adaptive workforce capable of addressing diverse challenges in the consistently
evolving landscape of the technology and gaming industry.

Valve’s commitment to a decentralized organizational structure and the formation of

organic project teams, known as “cabals,” fosters a creative and responsive work
environment. The formation of structure, a horizontal structure, allows employees to
collaborate with different people freely. In this way, Valve increased the creativity of the
workers. Pushing employees to be creative, not only promotes innovations but also
ensures that the company can rapidly adapt to emerging trends and challenges. Thus,
Valve had an innovative business model. This model established its most known product
Steam, which has revolutionized the video game industry. Valve’s advance into digital
distribution changed the way games are developed, distributed, and consumed. By
providing a platform like Steam, Valve gained a substantial market share and became a
major player in the digital distribution space, solidifying its position as an industry leader.

Valve’s untraditional organizational structure is fundamental to its success. This

structure allows for spontaneous order and encourages creative freedom among
employees. The company’s non-hierarchical, employee-driven approach fosters
independence and creativity. Workers are not limited by traditional roles; instead, they are
encouraged to choose projects based on their passion and expertise. This approach
significantly enhances employee motivation and productivity.

Crucially, Valve gave its employees the freedom to fail as a learning opportunity. The
company recognizes that failure is a natural part of the creative process and encourages a
culture of risk-taking. This acceptance of failure fosters resilience, adaptability, and
continuous improvement of the employees.

In conclusion, Valve’s success was thanks to its innovative business model,

flexibility, organizational structure, and promoting creativity and resilience. By giving
importance to T-shaped workers, embracing spontaneous order, encouraging risk-taking,
and talented workers that align with the company’s vision, Valve has changed the frame
of technology and gaming.
2. Should Valve start producing hardware? If so, how?

Venturing into hardware could present a way to reach a broader audience, reducing
dependence on software revenue and developing new income flows. This strategic move
aligns with the industry's evolving landscape and allows Valve to access new markets.
However, hardware production brings the challenge of preserving Valve’s creative
culture. The company’s organizational structure and emphasis on individual
empowerment have been significant in its success. The critical question is whether Valve
can introduce hardware without compromising the creative autonomy that has been
fundamental to its achievements.

Valve can be successful with its organizational structure which promotes creativity
and gives freedom to the employees. The T-shaped employee structure, characteristic of
deep expertise in specific domains and a broad skill set, offers a unique advantage. These
workers can easily adapt to the new sector and become an expert in it.

To solve possible challenges of entering hardware development, horizontal structure

can be crucial. Separating tasks into groups decreases the total time spent and increases
the in-depth improvement. Since the structure of Valve is compatible with this approach,
Valve can easily overcome the possible challenges of hardware.

Strategic hiring plays an essential role in the success of hardware ventures. Recruiting
individuals with expertise in hardware development, while ensuring coherence with
Valve’s culture and values, is important. Balancing the inherently more structured nature
of hardware development with Valve’s innovative spirit presents a challenge that demands
adaptability.

In conclusion, the decision for Valve to enter hardware production may be

challenging. But if Valve protects its culture and hires suitable new employees for its
missions, Valve will be successful in the hardware sector.