Core Organizational Competence
(Redirected from Core Competency)
A Core Organizational Competence is an organizational competence that distinguishes a firm in the marketplace.
- Example(s):
- Wal*Mart's Company Culture of hard work, business process efficiency and business process orientation.
- Wal*Mart's Distribution Network that increases efficiency.
- …
- Counter-Example(s):
- See: Business Capability, Core Business, Core Product, Business Strategy.
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:
- Provides potential access to a wide variety of markets.
- Should make a significant contribution to the perceived customer benefits of the end product.
- 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.
- 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]
- ↑ Prahalad, C.K. and Hamel, G. (1990) "The core competence of the corporation", Harvard Business Review (v. 68, no. 3) pp. 79–91.
- ↑ Schilling, M. A. (2013). Strategic Management of Technological Innovation, p.117 International Edition, McGraw-Hill Education.
2015
- https://hbr.org/1990/05/the-core-competence-of-the-corporation
- QUOTE: Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies. Consider Sony’s capacity to miniaturize or Philips’s optical-media expertise. The theoretical knowledge to put a radio on a chip does not in itself assure a company the skill to produce a miniature radio no bigger than a business card. …
If core competence is about harmonizing streams of technology, it is also about the organization of work and the delivery of value.
- QUOTE: Core competencies are the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies. Consider Sony’s capacity to miniaturize or Philips’s optical-media expertise. The theoretical knowledge to put a radio on a chip does not in itself assure a company the skill to produce a miniature radio no bigger than a business card. …