Core competency
From Wikipedia, the free encyclopedia
Core competency is something that a firm can do well and that meets the following three conditions:
- It provides consumer benefits
- It is not easy for competitors to imitate
- It can be leveraged widely to many products and markets.
A core competency can take various forms, including technical/subject matter know how, a reliable process, and/or close relationships with customers and suppliers (Mascarenhas et al. 1998). It may also include product development or culture, such as employee dedication.
Core competencies are particular strengths relative to other organizations in the industry which provide the fundamental basis for the provision of added value.
[edit] References
The value chain is a systematic approach to examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980). The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organisation. The 'margin' depicted in the diagram is the same as added value. The organisation is split into 'primary activities' and 'support activities.'
