Core Competencies

Question 1

What are core competencies?

Answer 1

Core competencies are the unique abilities that a business possesses that provide it with competitive advantage

Question 2

What are the 3 factors that make an organisations attributes are truly core competencies?

Answer 2

• Do they provide access to a wide range of markets
  > Can they create desirable new products.
• Do they contribute significantly to the end product benefits received by the customer
  > Customers strongly attracted to products which offer benefits that aren’t available elsewhere.
• Are they difficult for competitors to imitate
  > Should not be easy to replicate if it is to be sustainable

Question 3

Why are core competencies important?

Answer 3

• Allow a business to take full advantage of opportunities to enhance performance and provide competitive advantage
• Potential of market leadership
• Shows they are using the right amount of resources in the right areas
• Helps to add value and gain a USP

Question 4

Core competencies criticism

Answer 4

• Outsourcing work becomes a weakness, workforce becomes fragmented, people work for different aims and objectives, under different cultures.
• May be outdated in a fast changing market