The “core” or nucleus of the business is the main activity of the company. It gives it an identity, expresses how it creates value and is the engine of growth. Over time, due to changes in the environment, markets and technologies, cores lose their ability to create wealth. Companies that are the last to understand this fact and proactively develop their core, create a new one, and even abandon the one that led to their birth.

Examples are numerous, Kimberly-Clark sold paper mills that were born to become a global company that produces paper products such as baby diapers, toilet paper, wet wipes, among others.

The Shell company was founded to sell shells to England. Its founder realized that there was potential in the export of lamp oil and commissioned the world’s first ship built to transport oil. Today it is an international group of energy and petrochemical companies.

American Express was born in the business of transporting cargo and packages. Then, in order to respond to the needs of its customers, it enabled the transportation of money, and finally offered plastic money, which led to the current credit card business.

Amazon started as an online book store and then expanded to all products. A few years ago, he noticed the exponential growth of Internet traffic and decided to enter the web infrastructure business by creating Amazon Web Services.

A Latin American case that stands out is Femsa, which has evolved from the leader in Mexico with Moctezuma beer to OXXO stores and pharmacy chains in Latin America.

We Ecuadorians must think as soon as possible about what will be our new economic core for the future.

Just as strategic decisions and their successful implementation lead companies to develop their core, so do cities and states. I recently heard the president of the banking association speak in Miami. He explained that until the late 1970s Florida’s economic core was tourism, agriculture and the construction industry. In 1977, Florida passed laws allowing foreign banks to open in the state and conduct international banking operations. It was a success, Miami became the second largest financial center in the USA after New York. During the COVID-19 pandemic, Florida remained open for business, causing many more Americans to relocate. Political instability in Latin America has also fueled a new business boom there. In addition, Miami’s mayor is promoting a new core: technology. In recent years, Microsoft, Nvidia, Uber, Amazon and almost 500 FinTech startups have arrived.

We Ecuadorians must think as soon as possible about what will be our new economic core for the future. For the past 50 years, crude oil has been Ecuador’s main source of income. Legal mining has great potential, as well as the export of non-traditional products, especially agricultural products. Defining them will be the starting point for focusing and aligning public and private goals and strategies. (OR)