Core Competency

PRESENTED BY- AMRIT NAYAK

SEC-A
ROLL NO- 11
 The Prescriptive Strategy
Process
Mission & Goals

Internal Capabilities External Environment

Strengths & Opportunities & Threats
Weaknesses
Objectives

Strategy

Feedback
Implementatio
n

Control

© Dr Bruce Cronin
WE ARE GOING TO DISCUSS
ABOUT:-

 Sustainable Competitive
Advantage
 Core Competence
 Improving Competitive Advantage
Core Competence
A group of production skills & technologies
that enable an organisation to provide a
particular benefit to customers
 Generators of customer value
 Extendable
 Distinctive
Core Competence
Examples
 Glaxo Wellcome – pharmacetucial
solutions for home and public
health.
 Honda - developing fuel-efficient,
reliable, and responsive small
engines and drives.
Limitations
 Difficult to identify
 Emphasis on skills, knowledge &
technology overlooks value of rent-
attracting resources
 Hierarchy of Capabilities
1. Current product-market profile
 what we’re selling, whom we are selling to and
what superior customer value we are offering.
2. Identification of sources of competitive
advantage
 why customers choose our products over
competitors’
3. Organisational capabilities and competencies
 resources & skills contributing to this competitive
advantage.
4. Evaluation of the most important
competencies
 extendibility
 distinctiveness
VRIO Framework
 Valuable
 does the resource add value or reduce the
cost of creating value?
 Rare
 is the resource distinctive to the firm?
 Imitatable
 is the resource costly to imitate?
 Organizational capacity
 does the organisation have the capacity to
use the resource
Improving Competitive
Advantage
 Benchmarking
 Systematic comparison of practices with another
organisation
 Leveraging existing resources
 Concentration – targeting resources
 Conservation – reducing waste, recycling
 Accumulation – of skills and knowledge
 Complementarity - seeking synergies
 Recovery – convert resources into cash quickly
 Upgrading resources
 Enhance weak resources – eg. upgrade equipment
 Complement existing resources - eg. branding
 Complimentary activities - eg. farming to tourism
THANK YOU