At our last board meeting, we got to talking about the core competencies of businesses. What exactly does the term ‘core competency’ mean? Simply stated, core competence is something a company does especially well relative to its competitors. Identifying these areas and focusing on them gives your business a key advantage in your industry. I’ve seen some companies spread themselves out in order to be an “all in one” sort of company. For example, a company that offers tech services, computer networking, websites, graphic design, and promo materials. (Seriously, they do exist.)
While this seems convenient on the surface for their clients, it has been my experience that they excel in one area, but suffer greatly in many of the other offered services. I often see websites developed by these types of companies lacking true design (often they’re developed by programmers and lack a certain…artistic quality). This isn’t just true for this industry, it works across the board.
There are three factors that help identify core competencies in any business:
- Provides potential access to a wide variety of markets (basically enable the creation of new products and services.)
- Makes a significant contribution to the perceived customer (benefits of the end product).
- Difficult for competitors to imitate.
Consider your options when choosing the companies you do business with and make sure they have their customer’s best interests in mind. For those business owners out there, consider your business’s core competencies. We guarantee you it provides a competitive advantage in your field.