Core Competency

Exercise 2/6

Core Competency

What do you do better than any other company in your industry? What sets you apart from your competition? What is genuinely unique about your company?

Core Competency is not a product or feature but an understanding of a market and the ability to create products which will drive it. It is something your company is able to do better than anybody else. Core Competency is the underlying foundation that will drive the success of your company. All products and services should be built around your Core Competency.

Let’s consider a high level example. Netflix started as a DVD delivery service competing with Blockbuster and other video stores. One could argument Netflix’s Core Competency is delivering entertainment / media content conveniently, initially via DVDs by mail then as a streaming service. However, its real Core Competency is in customer viewing experience. While DVD delivery by mail and streaming content provide customer viewing experience convenience, Netflix’s Core Competency of understanding the customer viewing experience drove them to branch out into original content creation, media distribution and more to become one of the largest entertainment / media companies in the world based on market capitalization. Netflix’s Core Competency of the customer viewing experience has won them numerous awards for their original content which they stream on virtually every popular electronic platform. Had Netflix failed to fully understand the viewing desires of their customers, their delivery platform would never have become the industry leader.

What is your company’s Core Competency? Ponder this question deeply. Look beyond what you think you do well or what you are capable of delivering. Avoid focusing solely on a product or market. Identify what you do or understand better than anyone else.

Without the proper foundation, a building can crumble. Likewise, without proper focus on your Core Competency, your company could also collapse.