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Many companies regard staying faithful to their core businesses as the key to success. However, when disruptive threats exist, they must pursue “transformational growth” by boldly abandoning their core businesses and identifying new core businesses that can replace them. Of course, they should not abandon their core competencies. The cases of Garmin and Fujifilm show that even if core businesses disappear, new uses of core competencies can uncover opportunities for growth. When entering new businesses, companies should create competitive advantages within a short period through continuous investment and expand their customer bases. Businesses with scalability can replace existing core businesses.

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According to the results of the “27th Annual Global CEO Survey” conducted by PwC, a management consulting firm, in 2024, 45% of CEOs said their companies would not survive within 10 years if they continued current trends and failed to innovate. In South Korea, 75% of CEOs gave this response. They recognize the need for corporate reinvention to achieve sustained growth, along with a sense of crisis that changes in technology and customer preferences are becoming increasingly difficult to control. Many companies are struggling to survive and grow in a world where disruption has become routine, that is, disrupt or be disrupted. In particular, companies 1 1For more details, refer to DBR No. 398, “‘Leaders Who Discard Well’ Focus on the Core.” 닫기 facing external threats that disrupt their core businesses must pursue transformational growth by shifting their core businesses.

There is no one-size-fits-all approach that companies can apply to pursue transformational growth. Management must identify the approach most suitable for their organizations. However, it is clear that revival and sustained growth are possible only when new core businesses comparable to existing core businesses are identified.

This article seeks to present ways for transformative change in core businesses by conducting an in-depth analysis of cases of companies that succeeded in finding paths to revival despite threats to their core businesses and those that failed to do so. These case studies provide a useful framework when determining “where to grow” or “where not to grow,” which is at the heart of corporate strategy.

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