“Core competencies are the resources and capabilities that comprise the strategic advantages of a business. A modern management theory argues that a business must define, cultivate, and exploit its core competencies in order to succeed against the competition”
- Investopedia, July 19, 2020.
For a retail business, 3 core competencies could be available stock, at the right price and choice. Location is no more a core competency. It used to be “location, location, location!”. Now, the channel could be online. As an example, retail organizations like shoprite and Ebeano will focus on making sure their customers have choice for their grocery needs, at a competitive price, in an upscale shopping environment. Users can then choose to go into the stores or to use LogAgg partners for delivery.
Lots of entrepreneurs lose focus solving for problems outside of their core competencies. This is often disguised as expansion, when in actual fact, it should be passed on to partners that provide low cost and choice. If the business chooses to invest, then it should be treated as an investment. In the city parcel delivery service, usually a bike delivery service can easily drive business owners from focusing on their own core competency to focusing on asset tracking, rider/driver efficiencies and delivery timelines.
Some business owners argue that running delivery (and this could be other business activities) allows them to reduce cost and provide a cost advantage in acquiring and keeping customers. This is a short term play. There is always a cheaper competition. Still focusing on our example of retail: driving for customer choice, stock availability are better opportunities to retain customers. Why would a customer want to spend 3 hours scouring the internet if they know they will always have a choice with your business for just a little more. A smart approach some businesses have taken is to expose that extra cost to their customers, who then know where that extra cost is going to. Others let their customers bring their own options, while others share the cost with the customer. All these are empathetic approaches a lot of customers appreciate.
LogAgg allows business owners to focus on their core competencies. LogAgg partners take the delivery headaches away – no need to bother with driver/rider efficiency, choice of delivery company, delivery updates and if the delivery makes it. LogAgg partners using the mobile app will provide business owners notifications through the process and allows customers to provide reviews to our partners.
Why not use our app on Google play store and Apple Appstore today? Focus on your core competency.