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