A provocative—possibly apocryphal—story has the late C.K. Prahalad, the guru of “core competence,” doing a strategy audit for a huge Indian conglomerate. The company, Prahalad tells the CEO, is simply too complex and diverse. It needs to shed a few divisions and find and focus on an integrative core competence. “Actually,” the CEO responded, “we do have a core competence that unites us: we’re very, very good at winning government contracts.”
Do Customers Even Care About Your Core Competence?
Not unless it makes their lives better.
October 17, 2013
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New!
HBR Learning
Customer Focus Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Customer Focus. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to keep your customers—and their most important needs—front and center.