Article 11

The Core Competence of the Corporation

The concept core competency introduced in the article by

C.K. Prahalad and Garry Hamel can be defined as “a
harmonized combination of multiple resources and skills that
distinguish a firm in the marketplace”. [1]

The criteria of Core Competency are: -

A. It gives a variety access to markets

B. Providing significant consumer benefits

C. Difficult to imitate by competitors.

The set of techniques or skills used for delivery of additional

value of the customer enabling wide access to the markets
resulting to core competency.

The article talks about the further development happens

cause of core competencies which can be enhanced to make
products for end user. Over a period of time the core
competencies are nurtured, rather than in a spank of time,
which again is a continuous process.

Core competencies were the major aspects which led NEC to

compete with competitors. The core competencies mean
differently to companies, they can use these attributes to
elevate value of stakeholders and customers.

A specialised skill or technique can be a core competency

which can earn profits. The core capability is the
management ability to develop, out of the core
competences, core products and new business. Thus,
competency building can therefore be enforced by the
highest parent in the hierarchy.

The core competencies should be built on the objective set

by the executives who in case will lead the future business to
success. The tangible and the in tangible resources of the
company need to be in line for the company to achieve and
excel, that being said, core competencies is one of the major
intangible assets which needs to be readily active to
accommodate the industry changes.
Example: Microsoft has expertise in many IT based
innovations where, for a variety of reasons, it is difficult for
competitors to replicate or compete with Microsoft's core
competences.

References: -
1. Schilling, M. A. (2013). Strategic management of
technological innovation, p.117 International Edition,
McGraw-Hill Education.

2. https://en.wikipedia.org/wiki/Core_competency