In this episode of The Innovation Show, host Aidan McCullen welcomes back esteemed guest Gary Hamel, celebrated business strategist and co-author of the revolutionary article on core competencies. They dive deep into the concept of competence-based competition, discussing the origins, importance, and modern applications of core competencies. Gary shares insights from his extensive work alongside CK Prahalad and reflects on how their ideas shaped corporate strategy. Using historical and contemporary examples, including Tesla and HAIER, they explore how focusing on deep skills can lead to enduring competitive advantages. This episode is a must-listen for anyone interested in innovation, strategy, and the future of business in a rapidly evolving world.
00:00 Introduction and Welcome
00:23 The Concept of Competence-Based Competition
01:24 Historical Context and Development
02:26 Core Competence and Strategic Implications
05:03 Challenges and Misinterpretations
13:37 Modern Examples and Applications
28:23 Strategic Conversations and Future Focus
35:12 The Danger of Viewing Companies as Product Sets
35:33 Intel vs. TSMC: A Strategic Misstep
37:56 Bounded Innovation and Core Competencies
38:49 Uber's Broader Vision Beyond Ride-Hailing
42:23 Amazon's Evolution from Online Retailer to Logistics Giant
43:21 US Car Makers' Myopia and Missed Opportunities
44:24 Historical Examples: Honda and Sony
47:01 Tesla: An Energy Company, Not Just a Car Maker
48:08 Microsoft's Myopic View and Missed Opportunities
56:00 The Importance of Organizational Flexibility
01:02:26 Encouraging Internal Innovation
01:08:42 Conclusion and Next Steps
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