Core Organizational Competence

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A Core Organizational Competence is an organizational competence that distinguishes a firm in the marketplace.



References

2015

  • (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/core_competency Retrieved:2015-5-18.
    • A core competency is a concept in management theory introduced by, C. K. Prahalad and Gary Hamel.[1] It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace". [2]

      Core competencies fulfill three criteria:

      1. Provides potential access to a wide variety of markets.
      2. Should make a significant contribution to the perceived customer benefits of the end product.
      3. Difficult to imitate by competitors.
    • For example, a company's core competencies may include precision mechanics, fine optics, and micro-electronics. These help it build cameras, but may also be useful in making other products that require these competencies.
  1. Prahalad, C.K. and Hamel, G. (1990) "The core competence of the corporation", Harvard Business Review (v. 68, no. 3) pp. 79–91.
  2. Schilling, M. A. (2013). Strategic Management of Technological Innovation, p.117 International Edition, McGraw-Hill Education.

2015