Top 5 Brands

Your Unique Skill

Sachin Tendulkar and
Mahatma Gandhi

WHAT??
Acore competencyis a concept in
management theory introduced by, C.
K. Prahalad and Gary Hamel. It can be
defined as "a harmonized combination
of multiple resources and skills that
distinguish a firm in the marketplace".

1980s

1990s

Restructure

Identify

Declutter

Cultivate

Delayer
organization

Exploit Core
Competencies

Example of GTE
NEC
Apple Google
Microsoft
Kingfisher

WHY??
Less Competition

New Entrants

No Innovation

Innovation and
R&D

Technological
hindrances
Low Risk

Blooming
Technology
Young and
Innovative minds
WESTERN vs JAPAN

Japans Identification
- Technology
XEROX - Photocopiers
SONY 8 mm
Camcorders
HONDA 2 Wh to 4 Wh
CANON Personal
Copiers
Yamaha Digital
piano
Casio LCD TV

Fast
Low Cost
Un anticipated Products
Ability to Restructure for
Swiftness

How??
Huge Tree
Trunk and Major
Limbs
Smaller Branches
Leaves, Flowers and
Fruits
Root

Company
Core Products
Business Units

If you see the leaves you will

miss the core competency

End Products
Core Competence

 Harmonizing streams of
technology
Organizations work and
delivery of value
Communication,
Involvement and Deep
Commitment to work
across boundaries
Does not diminish with Use
in fact enhanced with use
Natured and protected
knowledge fades away if
not used
Glue that binds existing
businesses

In a Nut shell

Proper Identification
3M Sticky notes, Post it notes, Magnetic tapes, Photo Graphic Fit, Pressure Sensitive
tapes, Coated Abrasives
GE couldn't manage it varied business and sold its stakes to Thomson
Honda Engine and Power Trains ventured into Cars and Motor Cycles
Canon Optics, Imaging and Micro processors into Copiers, Laser Printers, cameras and
Image Scanners
Does it mean huge R & D and diversification is the key?? NO
Canon out run XEROR in copier business with a minimal investment as compared to Xerox

Identifying or loosing
then
1. Provides access to wide variety of markets
2. Make a significant contribution to the perceived
customer benefits of end product
3. Difficult for competitors to imitate
Forgoing an opportunity is loosing it
Ex: Canon personal copiers which Xeror was not able to
utilize

Core Competency to
Core Products
Tangible link between identified Core Competencies and
End Products is Core Product
Honda engine is Core Products the management skills,
R & D leads to their End Product
Core products are Components
Core Competencies Core Product End Products

What's you learning?

Identify your USP and enhance it to excel
Merge all your Skills to Bring a Final Product
Utilize every opportunity once missed is lost