Core competencies

Core competencies in business emerged as a resource based on the large-scale strategy approach of corporate America, which was initially described as something that the firm can do by meeting two conditions. First, that it solves a problem or provides a benefit that the target consumer needs, so it is not easy for competitors to imitate it. And second, that it can be leveraged for many products in many markets.

As you can see, there is a problem with this initial definition, which practically excludes small businesses, which in those days, before the Internet, could not meet the second condition of leveraging many products in many markets. Fortunately, over time, the concept of core competencies has evolved.

A more updated and correct concept would be that they are identified attitudes, knowledge, skills, which directly and positively impact the success of the business process. Competencies can be correctly measured and improved through growth, training, mentoring and learning opportunities. What this means is that there are key skills that a company develops that give it a competitive advantage over its competitors and contribute to its success.

Key characteristics

You must keep in mind that for a business to be successful, it is difficult for it to be successful if it does not have one or more of these core competencies:

• Quality of products or services.

• Personalized customer service.

• Perceived value of innovation.

• Unique marketing strategies.

As you have seen earlier in the course, I like to use real-life examples to better illustrate the concepts and theoretical frameworks I present. My first example is a company that everyone is familiar with, and which has one of the strongest core competencies, making it easier for us to identify them for didactic purposes.

I am referring to Apple, the technology giant, a company with hundreds of thousands of employees around the world and billions of dollars in revenues.

Here are some of Apple's core competencies in design innovation. Apple has a long history of developing innovative technology products, including the iPod, iPad, iPhone, Apple TV, Apple Watch, starting with the Apple 1 and the Macintosh and other products that revolutionized the market in their time. But why is innovation one of their core competencies?

Because they have proven time and time again that they can take a new product, and change and improve it in unique ways, which is very difficult to replicate and conducive to resounding commercial success. For example, when the IPhone came out, BlackBerry sales almost disappeared within a few years.

Apple is an ideal example of brand recognition; fans of its products tend to be extremely loyal. It has become commonplace for their customers to wait in long lines to get one of their new products. They have created a system where their consumers buy the newest product released to the market, even if the old one they own is still in good condition. Apple's loyalty to its users is the envy of all corporations around the world, and to this day no one has been able to replicate it.

Apple's market philosophy revolves around meeting market needs, focusing on innovating and building products that are easy to use, work well together, and emphasize brand recognition.

Your core competencies

The above example is one of core competencies at the highest level, and you may wonder how a small entrepreneur can maintain the same competencies as a massive corporation like Apple. It's not that complicated really, there are a set of competencies that you must have or aspire to for your business to be successful, here are some examples:

• Adaptability: I would say that this is the main characteristic you must have to be a good entrepreneur, because to make your way in the business world you are going to face many adversities. You must have a goal in your mind that you want to reach, but the road will not be easy, you have to work and put a lot of effort to achieve your goal. And along the way you may experience sudden changes that require quick adaptation and course correction. A person who gets frustrated quickly in the face of change and lacks adaptability will not be able to be successful in his or her venture.
• Negotiation: This is another key skill of the entrepreneur, especially the new entrepreneur. How can you start a successful business without negotiation skills? When you start in the business world, you will find yourself in many situations where you will have to negotiate, either with your suppliers, with your customers, with your competitors or even with your own employees.
• Global vision: This skill allows you to see beyond your smal