How do you balance between maintaining your core competencies and adapting to new trends and opportunities?

1 What are core competencies?

Core competencies are the unique capabilities and resources that give a business a competitive edge in the market. They are the things that you do better than your rivals, and that your customers value and recognize. Core competencies can be skills, processes, technologies, culture, or assets that are hard to imitate or substitute by others. For example, Apple's core competencies include innovation, design, and brand loyalty.

2 Why are core competencies important?

Core competencies are important because they help you create and sustain a competitive advantage in your industry. They allow you to differentiate yourself from your competitors, and to offer superior value to your customers. Core competencies also help you focus on your strengths, and allocate your resources and efforts more efficiently. By developing and leveraging your core competencies, you can increase your profitability, market share, and customer loyalty.

3 How to identify your core competencies?

To identify your core competencies, you need to conduct a thorough analysis of your business and your market. You can use various tools and frameworks, such as SWOT analysis, value chain analysis, or the VRIO model, to evaluate your strengths and weaknesses, and your opportunities and threats. Additionally, ask yourself questions such as: what do you do exceptionally well that customers appreciate and pay for? What do you do differently or better than your competitors that gives you a distinctive edge? What are the things that are hard to copy or replace by others, and that create barriers to entry or imitation? What are the things that are aligned with your vision, mission, and values, and that support your strategic goals and objectives? Answering these questions can help you identify your core competencies.

4 How to improve your core competencies?

To improve your core competencies, you should invest in continuous learning and innovation, and monitor and adapt to the changing needs and preferences of customers and the market. You can use benchmarking, customer feedback, market research, or experimentation to measure and improve performance and quality, and identify and exploit new opportunities and trends. Additionally, ask yourself how you can enhance or refine existing core competencies, develop or acquire new ones, leverage or combine them, and protect or defend them to prevent or overcome threats or challenges.

5 How to balance between core competencies and adaptation?

To balance between maintaining your core competencies and adapting to new trends and opportunities, you need to adopt a dynamic and flexible approach that aligns with customer and market needs. Differentiation, diversification, collaboration, and innovation are all strategies and tactics you can use to create and sustain a competitive advantage and satisfy customers. Ask yourself questions such as: how can you use your core competencies to create value and differentiation in your market, explore and exploit new markets, collaborate or partner with other businesses, and innovate or disrupt your industry? Doing so can help you meet or exceed customer expectations, reach or attract new customers, create win-win situations, and capture new value or opportunities.