You are on page 1of 9

Core Competencies: Roots of Competitiveness

Core Competencies

The Three Tests

NEC vs. GTE

In 1980s
GTE was well positioned to become major player in evolving IT Industry. Its operations spanned a variety of businesses including telephones, switching and transmission systems, digital PABX, semiconductors, packet switching, satellites, defence systems, and lighting products.

In 1980s (Contd.)
GTEs Sales were $9.98 Billion, Cash Flow was $1.73 Billion. NEC was much smaller with $3.8 Billion in sales. NEC had no experience in Telecommunications industry.

After 8 years
GTEs sales were $16.46 Billion NECs sales were $21.89 Billion NEC emerged as world leader in semiconductors and as a first tier player in telecommunications industry. NEC is the only company in the world to be in the top five in revenue in telecommunications, semiconductors, and main- frames

You might also like