Core business

The core business refers to the actual, important business area of a company which usually is the main contributor to revenue and ensures the return of the company.

The competence of a company in its core business is often the result of a long historical development, sometimes associated with patents and intensive efforts in research and development.

The core business in corporate strategy

The core business is an important aspect of corporate strategy: While some companies focus for strategic reasons on the core business and other businesses outsource either bring to the stock exchange or sell, get other companies in promising new business or take over by buying other companies to make their supplement previous core or on a broader basis.