Core Competence

Farhan Bogra

G. Hamel

C.K Parahlad

Competing for The Future Bundle of skills and technologies that enable a company to provide a particular benefit to customers .

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³Competencies are mainly seen as inputs´ .

³The high ranking core competencies will ensure the better-quality of end products/services´ .

Start from the inside. out What does our firm do best? .

Why are core competencies important? ‡ They are the skill sets your organization possesses that set it apart from its peers. ‡ They are the building blocks to future opportunities and earned income ventures. ‡ They are what make your organization unique. . ‡ They are sources of competitive advantage.

Difficulty of Imitation 3. Relevance 2.3 Tests for Core Competence: 1. Breadth of Application .

Protecting core competencies .M A N AG I N G CO R E CO M P E T E N C I E S 1. Building core competencies 3. Selecting core competencies 2. Deploying core competencies 4.

developing core competencies takes time ‡ Focus.define the competencies needed ‡ People with appropriate skills ± Train current personnel ± Recruit personnel with needed skills ‡ Integration of these skills ± Usually a function of management ‡ Institutionalize the activity through processes and procedures .Developing Core Competencies ‡ Management commitment.

‡ When competencies become imprisoned. . small companies can compete with industry giants. ‡ Only by leveraging core competency. the people who carry the competencies do not get assigned to the most exciting opportunities.

Examples .

Procter and Gamble Marketing and Advertising .

Campbell's Soups ‡Marketing ‡Skilled educated workres mostly based on researchers .

Gillette Design of men's shaving products .

Sony Advanced consumer electronics .

Rover Off road vehicles (Land Rover. Range Rover) .

Chrysler Corporation Design and marketing of Mini-vans .

Honda "full hybrid" Insight auto .

Fujitsu Laptop with multimedia projection .