Resumen

The text “Finding your next core business” by Chris Zook published in the Harvard Business Review in April 2007 deals about the growing imperative for management to redefine or strengthen their corebusiness. Often companies fail to redefine or expand their core as the top management misjudges the point where their core business had reached its peak of the life cycle or whether it is time remainthe core business.
The question that arises from this is: “How do you know when your core needs to change in some fundamental way? And how do you determine what the new core should be?” (Zook 2007:68) Here, the text suggests three warning signs that should make you aware of a necessary change. The first one refers to profit pools. Profit pools are the places along the total value chain of anindustry where attractive profits are earned. If profit pools are declining, the whole industry may be not that attractive and other cores need to be created. The second warning sign are inherentlyinferior economics. These often come to light when a new competitor enters the field unburdened by structures and costs that an older company cannot readily shake off. At the moment, this phenomenon canbe regarded in the worldwide solar and machinery industry which is heavily penetrated by the Chinese industries. The third warning sign is a growth formula that cannot be sustained. It means that amanufacturer of a specialized consumer product might find its growth stalling as the market reaches saturation or competitors replicate its once unique source of differentiation. (Zook 2007: 68) Thisproblem is maybe reflected by declining sales volume, whereas the market is increasing.
To evaluate the present core business in detail, the HRB text suggests a checklist that consists of the following5 questions:
1. What is the state of our core customers?
2. What is the state of our core differentiation?
3. What is the state of our industry’s profit pools?
4. What is the state of our core...