What: is Core Competency?
Core competencies are the most significant
value creating skills
within your corporation
and key areas of expertise which are
distinctive to your company and critical to the company's long term
Your company's core
competencies are the things that you can do better than your competitors in
the critical, central areas of your company where the most
is added to your products. These areas of expertise may be in any area from
product development to employee dedication.
"A core competency is an area of specialized expertise that is the result of
harmonizing complex streams of technology and work activity."
A competence which is central to your
business's operations but which is not exceptional in some way should not be
considered as a core competence, as it will not generate a
advantage over rival businesses. It follows from the concept of Core
Competencies that resources that are standardized or easily available will
not enable a business to achieve a
Core Competence vs. Sustainable
If a core competence yields a long term
advantage to the company, it is said to be a
sustainable competitive advantage.
A corporation that builds on core competencies
utilizes skills that combine to strengthen
value chains and build greater competitive advantages. This leads to
whereby they become more productive together than independently.
Core Competence as a Team Sport
A core competence is a combination of
complementary skills and knowledge bases embedded in a group
or team that taken together makes it possible to provide a
10 Commandments of Innovation
Have a Dream.
Focus on your core competences and
Tesco was very successful in
capturing leadership of the market for online grocery
shopping due to the following core competencies that mean
the Tesco.com experience so highly...