“Focus on the core” is the management fad that has been around now for quite awhile but what does it really mean and is it really the silver bullet some think it is? Focusing on your core strength might actually be the wrong strategy for many businesses and here’s why. There are times when your core might become obsolete, like in the case of Kodak film. They focused on their core right into bankruptcy. Another disadvantage of focusing just on your core is that it limits the new learning that comes from trying something totally different. Often great insights come from something way outside your normal circle. Trying new things is what keeps business and life fresh and exciting. A never ending quest for market share can dull a business quicker than just about anything. And last but not least, we are capable of having more than one strength, we just need to develop them.
When Apple opened their first Apple store in 2001 there were many skeptics that thought, with so few products it is too narrow of an appeal, it just won't work. It also happened when electronics retailers were on the decline and after all what did Apple know about retail stores? But somehow Apple pulled off a big win and approximately 14 years into the “experiment” they have the most profitable retail space per square foot in America! Not only that but it has magnified and promoted their brand in ways that were unimaginable before the Apple store.
It might seem logical to outsource something that is not your core strength but not if it needs to be. For instance, retail sales was not Apples strength and it may not be yours but it may provide an opportunity for you to clarify product differentiation and promote brand value better than any other way and therefore it needs to be in-house and not outsourced. Think of all your business processes and determine if you know of a unique product or process that is more effective, cheaper and/or faster than what subcontractors can or are willing to produce. If you do have an insight on some part of the business you don’t currently control, it might be a big innovation game changer to bring it in house and make it one of your strengths.
When Apple opened their first Apple store in 2001 there were many skeptics that thought, with so few products it is too narrow of an appeal, it just won't work. It also happened when electronics retailers were on the decline and after all what did Apple know about retail stores? But somehow Apple pulled off a big win and approximately 14 years into the “experiment” they have the most profitable retail space per square foot in America! Not only that but it has magnified and promoted their brand in ways that were unimaginable before the Apple store.
It might seem logical to outsource something that is not your core strength but not if it needs to be. For instance, retail sales was not Apples strength and it may not be yours but it may provide an opportunity for you to clarify product differentiation and promote brand value better than any other way and therefore it needs to be in-house and not outsourced. Think of all your business processes and determine if you know of a unique product or process that is more effective, cheaper and/or faster than what subcontractors can or are willing to produce. If you do have an insight on some part of the business you don’t currently control, it might be a big innovation game changer to bring it in house and make it one of your strengths.
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