The term “core competency” was coined by management experts CK Prahalad and Gary Hamel in an influential 1990 article titled “The Core Corporate of the Corporation” published in the Harvard Business Review. Prahalad and Hamel have defined core competencies as unique capabilities or advantages owned by companies that are important to their competitive advantage and ability to achieve long-term success. These capabilities are not just the skills and technology itself, but also collective learning and coordination in various business units that allow companies to deliver unique value to their customers.
On average, companies typically own three to five core competencies. For example, Sony’s core competencies in imaging and sensing technologies have been important in the development of high-quality camera sensors used in smartphones and professional cameras. Apple’s core design and user experience competencies are at the heart of the success of products such as the iPhone and Apple Watch. Honda’s expertise in engine design and manufacturing makes it superior not only in the automotive industry but also in the production of motorcycles and power equipment. These capabilities are essential to our ability to innovate and adapt, providing sustainable competitiveness in the market.
The concept of “core competency” generally applies to countries and businesses. But think in broader terms. How about the US? American core competencies are often highlighted by the key strengths of various sectors, contributing to global influence and leadership. One of the main areas of excellence is innovation and technology. The United States has leading technology companies and research institutes driving advancements in areas such as information technology, biotechnology, and aerospace. This innovation is supported by an entrepreneurship and a robust ecosystem of business, and features a strong entrepreneurial culture and a legal and financial system that promotes innovation and development.
Higher education and research are also crucial elements of America’s core competency. American universities are renowned for their educational and research quality, attracting students and academics from all over the world. This educational prowess feeds the country’s innovation and adaptability capabilities, further enhancing technological advancements. Furthermore, the US has important cultural influences through the entertainment industry, including film, music, and television, which shape trends and popular culture worldwide.
The United States is also one of the most advanced and powerful military forces in the world, maintaining a terrifying military force that provides strategic influence and defensive capabilities. Economically, the United States benefits from a diversified economy, including a wide range of industries, from agriculture and manufacturing to services and technology. Rich in natural resources such as oil, natural gas, minerals and farmland, the United States is leveraging these assets to strengthen its economic position. Furthermore, as a major global force, the United States plays an important role in global diplomacy, trade and governance, affecting global policies and agreements.
However, when it comes to healthcare, the US faces important challenges that prevent it from being universally recognized as having core competency in this area. The United States is a leader in medical research, innovation and technology, but the entire healthcare system is characterized by key issues. Access and coverage are problematic as systems do not provide universal coverage. Many Americans are uninsured or uninsured and have limited access to the health care services they need.
Although the cost of health care in the United States is the highest in the world, health outcomes do not always reflect the level of spending, indicating systemic inefficiency. Compared to other developed countries, the United States is often ranked low on key health indicators such as life expectancy and infant mortality. Furthermore, health care systems are extremely complex and fragmented, with a mix of public and private payers and providers that can lead to care disparities. Important inequality in access to health outcomes and care based on socioeconomic status, race and geography further highlights challenges within the system.
Thus, while the US excels in certain aspects of healthcare, such as cutting-edge medical research and the development of new therapies and technologies, the system-wide issues hinder the perception of healthcare as a large core competency.
My question is, which aspect of Trump’s trade war with other countries will improve our broken health care system? In the long run, and I’m stressing it in the long run, trustees may strengthen the economy. But it still leaves most of the other core competencies untouched – something that allows you to use unknown shots on your arm. When it comes to healthcare I consider mission critical, it’s not even Trump’s radar. Not only that, tariffs will not repair broken health systems. They only make them worse.
Tariffs hurt the US health system by increasing the costs of imported medical supplies, equipment and medicines. Many of these products are sourced from global supply chains, and increased tariffs could lead to increased costs for healthcare providers, which could be passed on to patients in the form of higher healthcare costs. Additionally, tariffs disrupt the availability of essential medical products.
Tariffs could possibly encourage domestic production of medical products, leading to a more robust local manufacturing sector. This can increase supply chain resilience and reduce dependence on foreign products and products. However, the transition to increasing domestic production can take years and in the interim there could be an unsustainable supply shortage or increased costs.
The US health care system is on the verge of collapse. Combined with Trump’s dangerous domestic policy and unqualified employment in leadership positions, the immeasurable purge of federal health workers pushed it forward. Now he wants to impose tariffs on our trading partners. As we know, I’m not too worried about the trade wars than the extinction of healthcare.
Arthur Lazaro It’s the former Doximity Fellowis a member of the American Association of Physicians’ Editorial Board and is a professor of psychiatry at Lewis Katz School of Medicine at Temple University in Philadelphia, Pennsylvania. He is the author of several books on story medicine. Fire Medicine: A travelogue of the story and The Treasures of Story: Medical Essays and Insights in the Story Tradition.
