Challenges for Strategic Management # 2

#2 Core Knowledge

This term refers to the need for organizations to possess and leverage specialized expertise, skills, and capabilities to gain competitive advantage and sustain long-term success.

Here are some key points to explore when discussing core business:

1. Definition and Focus: Core business activities are those that align closely with the organization's mission, vision, and strategic objectives.
2. Adaptation and Evolution: In a dynamic business environment, organizations must be agile and adaptable to changes in market conditions, customer preferences, and industry trends.
3. Diversification and Expansion: While core business activities are central to the organization's identity and success, there may also be opportunities for diversification and expansion into related or complementary areas.

VALUE CHAIN TRANSFORMATION

The value chain refers to the series of activities involved in the creation, production, and delivery of a product or service, from raw materials sourcing to the final customer.

How changes in the value chain can affect a company's core business?

1. Supply Chain Disruptions: Resilience
2. Technological Advancements: Innovation
3. E-commerce and Digitalization: Digitization

By proactively monitoring market trends, embracing technological innovations, and adapting to evolving customer needs, companies can navigate changing value chain dynamics and position themselves for long-term success.

Thanks for reading!

Daniel Samir.