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Article 11 The Core Competence of The Corporation

The document discusses core competencies, which are unique skills or resources that distinguish a company in the marketplace. Core competencies provide significant customer benefits, are difficult for competitors to imitate, and give companies wide access to markets. They are developed over time through a continuous process rather than quickly. Core competencies allowed NEC to compete successfully and can be used to increase value for stakeholders and customers. Microsoft's expertise in many IT innovations are examples of core competencies that are challenging for competitors to replicate.

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45 views2 pages

Article 11 The Core Competence of The Corporation

The document discusses core competencies, which are unique skills or resources that distinguish a company in the marketplace. Core competencies provide significant customer benefits, are difficult for competitors to imitate, and give companies wide access to markets. They are developed over time through a continuous process rather than quickly. Core competencies allowed NEC to compete successfully and can be used to increase value for stakeholders and customers. Microsoft's expertise in many IT innovations are examples of core competencies that are challenging for competitors to replicate.

Uploaded by

manasrmohanty
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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

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