Core Competency Flashcards
What is a core competency
For companies with multiple business units or product lines:
-Core competencies: root system that provides nourishment, stability
-What organization knows: coordinating production and technology
–What your company does better than everyone
― Access to a wide variety of markets
― Benefits the product as perceived by the customer
― Difficult for the competitors to match
-Bind existing businesses together & helps capture new opportunities
― Prevents you from taking disastrous outsourcing decisions
― Knowledge fades when it is not used
-More than just the sum of your existing products
How to reinforce a firm’s core competencies?
-Clarify core competencies – the entire organization needs to know (be reminded) on how they can support the competitive advantage
-Identify core competencies. For example, ask “How successful would we be without this competency?”
-Build and invest in core competencies (use it or lose it)
-Infuse resources throughout the organization. “Stop thinking of the
business unit as sacrosanct.”
-Celebrate people and projects that embody core competencies
