The so-called core competitiveness is the company's ability to coordinate different products and integrate with various technologies. The real advantage of the company is that the management can integrate the technology and production capacity of the whole company into the core competitiveness, so that all businesses can cope with the changing opportunities.
Imagine the diversified management of each enterprise as a tree: trunk and branches are the core products, slender branches are the business units, and leaves, flowers and fruits are the final products. Providing nutrients for big trees and supporting stable roots are the core competitiveness of the company.
Paying active attention to core competitiveness can enable companies to create a unique integrated system to enhance the synergy between different products and technical capabilities-this system advantage is unmatched by competitors.
Determine the core competitiveness
First of all, you need to be clear about the strategic intention of the company. The strategic intention determines the significance of the company's existence and the target market.
After the strategic intention is determined, the core competitiveness that supports the realization of the strategic intention is determined.
You need to keep asking yourself:
If we don't master this core competence, how long can we stay ahead in business?
How many opportunities will we lose if we don't master this core competence?
Can core competence enable companies to occupy different markets?
Can core competence provide customers with various values?
In fact, the tangible connection between the core competitiveness and the final product determined by the company is called the core product, that is, one or more physical products that can reflect the core competitiveness.
It is very important to distinguish between core competitiveness, core products and final products, because global competition follows different rules at different levels. In order to establish or consolidate a long-term leading position, the company is likely to become a winner at all levels.
Develop a strategic framework
For diversified companies, if their information system, communication mode, employee development, management salary and strategy-making process are all subject to the organizational boundaries of the strategic division, then their core competitiveness is bound to be incomplete. Therefore, top managers should spend a lot of time to formulate the strategic structure of the company.
The strategic framework must be dynamic, and create a good management culture, teamwork spirit and innovation ability, and form an atmosphere of enjoying resources, protecting proprietary skills and considering problems from a long-term perspective. Such a strategic framework is not easy to be imitated by competitors. Of course, all these problems depend on how the strategic structure should be designed. Every company has a different answer.
Let's go back to the metaphor of the tree above-companies should be organized around core products and finally according to core competitiveness. Core competitiveness is the source of expanding new business and should constitute the strategic core of the company. Only when the company is regarded as an organization composed of core competitiveness, core products and market-oriented business units can it adapt to the competition.
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